How to determine the inventory cost using the fifo and lifo

Q: Inventory and Purpose of Inventory management

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What are the different methods to estimate inventory?

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Q: What is the formula used to determine the amount of merchandise inventory to be purchased?

A: To calculate amount of merchandise inventory to be purchased, we need opening inventory amount,…

Q: What is the amount of Inventory to be presented at the Balance Sheet date using the LCNRV Individual…

A: Solution Concept FIFO method :  Under this method the goods in opening inventory is sold first LCNRV…

Q: From the information provided below can you please complete the given table using the FIFI method of…

A: Under FIFO Method, units which came in first will be issued first and the inventory will be out of…

Q: a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of…

A: Ending inventory is computed by adding the beginning inventory and purchases and then subtracting…

Q: Which cost formula for inventory best reflects the current value of inventory on the balance sheet?…

A: inventory valuation methods are based on the flow of inventory. There are mainly four methods of…

Q: What is a LIFO inventory pool? How is the cost of ending inventory determined when pools are used?

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Q: How much is the total cost of inventory to be presented in the financial position of XYZ?

A: Inventory valuation is done by the Business Entity as per the rules prescribed under the Relevant…

Q: Explain which physical units of goods should be included in inventory.

A: Inventory:   It refers to an accounting term used to describe the goods in various stages in the…

Q: Which inventory system provides a better matching of revenue and expenses - Weighted Average, Moving…

A: Following is the answer to given problem

Q: How do you calculate inventory turnover ratio

A: Inventory turnover ratio indicates how fast a firm converting its inventory into the cost of goods…

Q: Define beginning inventory and ending inventory

A: The beginning inventory and ending inventory are explained as below,   The Inventory can be defined…

Q: What is the amount of ending inventory and cost of goods sold under the FIFO inventory costing…

A: Periodic inventory system:   The periodic inventory system records and updates the inventory after…

Q: FIFO method to determine its cost of inventory.

A: Under FIFO method of inventory valuation, goods come first into the store are sold first.

Q: Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.

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Q: Compute the cost of the ending inventory and the cost of goods sold under FIFO LIFO • average-cost…

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Q: Required: Compute the ending inventory cost using   a. Moving average method   b. FIFO method

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

Q: How about the cost of inventory held by the consignee

A: Cost of inventory includes purchase cost of inventory, it's conversation cost and any other expenses…

Q: Explain the inventory cost flow assumption: FIFO, LIFO, weighted average. Provide examples.

A: The company will purchase the inventory, and it will be sold more than its cost to earn revenue for…

Q: Define total inventory costs (TIC)

A: The formula to compute total inventory cost as follows:

Q: What is Included in Inventory?

A: Inventory is the assets available for sale and used in process of production of such assets for sale…

Q: Discuss the different types of Inventory system

A: Traditionally the inventory is recorded by manually counting the items in the warehouse and it is…

Q: Compute the cost of the ending inventory and the cost of goods sold under FIFÓ, LIFÓ, and…

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Q: Explain how inventory is used and understand what it costs.

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Prepare the inventory records using the First-in-first-out (FIFO) method.

A: FIFO Method - In this method, the quantity which is purchased first is sold first and basis on that…

Q: How do you use FIFO and LIFO to calculate the cost of inventory?

A: Lets understand the meaning of LIFO and FIFO method. In First In First Out (FIFO) method company…

Q: Explain an example how to calculate net cost of inventory.

A: Net Cost of Inventory indicates the actual cost of inventory purchased. Net cost of inventory is…

Q: Compute the correct amount of inventory.

A: Inventory is the stock which the company has in order to sell them in the normal course of the…

Q: Assuming that a perpetual inventory system is used, determine the cost of goods sold and the ending…

A: Inventory valuation refers to the methods used by the company to determine the value of its…

Q: When using the periodic inventory system and weighted-average inventory costing method, when is the…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: Define Retail Inventory Method.

A: Retail inventory method: The retail inventory method is used to calculate the value of ending…

Q: Explain the inventory accounting system.

A: Inventory accounting is the body of accounting that used to valuing and accounting for changes in…

Q: NEED ANSWER ASAP Q: USING THE BALANCE SHEET PROVIDED, WHAT IS THE AVERAGE FINISHED GOODS INVENTORY?…

A: Finished goods inventory means amount of remaining unsold finished goods held by the business. This…

Q: Describe the calculation of the cost of goods sold when using the periodic inventory system.

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: nding Inventory and Cost of goods sold using LIFO?

A:

Q: According to our authors, define “cost” as it relates to determining the value of inventory. Provide…

A: Value of inventory is the cost associated with the company's inventory at the end of a reporting…

Q: Explain the difference between the retail inventory method using LIFO and the dollar-value LIFO…

A: LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it…

Q: Which of the following inventory method measures most closely the current cost of inventory?   a.…

A: The inventory valuation is carried out at the end of the accounting period. The different inventory…

Q: how do I find the amount of inventory under the dollar value using the LIFO method?

A: Dollar value LIFO Method: Dollar value LIFO is a method which is basically used for inventory that…

Q: Calculate the value of ding system. Ending inventory Cost of goods sold $ $

A: FIFO It is the method where we assume that the goods which were purchased earlier will be sold…

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.