he units of an item available for sale during the year were as follows: Jan. 1 Inventory 50 units at $115 Feb. 17 Purchase 88 units at $140 July 21 Purchase 35 units at $128 Nov. 23 Purchase 15 units at $155 There are 75 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method.

Q: The units of an item available for sale during the year were as follows: Jan. 1 Inventory 11 units @…

A: Inventory valuation is based on the method of flow used by the organization. It can be the first in…

Q: Beginning inventory, purchases, and sales for an inventory item are as follows: Sept. 1 Beginning…

A: Perpetual Inventory System: The perpetual inventory system records and updates the inventory after…

Q: Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item…

A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…

Q: Inventory by Three Methods; Cost of Goods Sold The units of an item available for sale during the…

A: Inventory valuation refers to the process of computing the value of inventory that is sold and…

Q: Periodic inventory by three methods; cost of goods sold The units of an item available for sale…

A: 1. FIFO (First-In, First-Out): This method assumes that the oldest inventory is used or sold first,…

Q: Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: The units of an item available for sale during the year were as follows: Jan. 1 20 units at $29 Aug.…

A: FIFO (First-In, First-Out): It's a method of inventory management where the first items purchased…

Q: Periodic inventory by three methods; cost of goods sold The units of an item available for sale…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

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.