Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):   41 units at $103 per unit 75 units at $82 per unit 171 units at $62 per unit Sales for the year totaled 275 units, leaving 12 units on hand at the end of the year. In comparing the ending inventory balances of FIFO and LIFO, the ending inventory value under FIFO less the ending inventory balance under LIFO results in a difference of:   Multiple Choice   $53.   $492.   $0.   $(492).

Q: You have the following information for Vaughn Inc. Vaughn Inc. uses the periodic method of…

A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. The ending…

Q: H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year.…

A: According to IAS-2 “Valuation of inventory”, inventories are valued at lower of cost or net…

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory…

A: Inventory Valuation Methods are methods of valuation of inventory.There are three methods of…

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: LIFO assumes that inventory purchased latest is sold first. In the closing inventory, 8,000 units…

Q: The following units of an inventory item were available for sale during the year: Beginning…

A: CONCEPT Valuation of ending inventory using average cost method: The value of ending inventory is…

Q: Sandhill Inc. reported inventory at the beginning of the current year of $320000 and at the end of…

A: Average inventory = (beginning inventory + ending inventory) /2 = (320000 + 371000) /2 = $345500

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.