Exercise 6-15A (Algo) Periodic: Cost flow assumptions LO P3 Flora's Gifts reported the following current-month data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 98 units-69 units from the January 6 purchase and 29 units from the January 25 purchase. k January 1 January 6 January 17 Beginning inventory Purchase Purchase January 25 Purchase Totals 230 units @ $4.90 408 units @ $4.70 635 units @ $4.20 41 units @$3.90 1,314 units = 1,127.00 = 1,917.60 = 2,667.00 159.90 $ 5,871.50 (a-d) Determine the cost assigned to ending inventory and to cost of goods sold for the following. (e) Which method yields the lowest net income? Complete this question by entering your answers in the tabs below. ces Req A to D Req E Determine the cost assigned to ending inventory and to cost of goods sold for the following. Note: Do not round intermediate calculations and round your answers to nearest whole dollar. Ending Inventory Cost of Goods Sold (a) Specific identification (b) Weighted average (c) FIFO (d) LIFO Bea A to D Reg E

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.