**FIFO Inventory Valuation: Cost of Ending Inventory and Cost of Goods Sold Calculation****Problem Statement:**If Exxon uses FIFO (First-In, First-Out) for its inventory valuation, calculate the cost of ending inventory and cost of goods sold if ending inventory is 110 barrels of crude oil.**Data Provided:****Beginning Inventory and Purchases**| Transaction Date | Barrels | Barrel Cost | Total Cost ||------------------------|---------|-------------|-------------|| Beginning inventory: Jan 1 | 127 | $94 | $11,938 || March 1 | 52 | $103 | $5,356 || June 1 | 67 | $97 | $6,499 || September 1 | 77 | $92 | $7,084 || December 1 | 52 | $102 | $5,304 || **Total** | **375** | | **$36,181** |**Solution Steps:**1. **Calculation of Ending Inventory:**Under the FIFO method, the ending inventory is determined by taking the most recent purchases first until the desired amount of ending inventory is accounted for. For an ending inventory of 110 barrels, start from the latest purchase and work backward. - From December 1: 52 barrels at $102 each - From September 1: 58 barrels at $92 each (110 - 52 barrels taken from December 1)**Calculation:** - December 1: 52 * $102 = $5,304 - September 1: 58 * $92 = $5,336 **Total Ending Inventory:** $ 5,304 + 5,336 = 10,640 $2. **Calculation of Cost of Goods Sold (COGS):**Since the total number of barrels is 375 and ending inventory is 110 barrels, the barrels sold are:\[ 375 - 110 = 265 \]Using the FIFO method, the cost of goods sold includes the oldest inventory first: - From January 1: 127 barrels at $94 each - From March 1: 52 barrels at $103 each - From June 1: 67 barrels at $97 each - From September 1: 19 barrels

FIFO stands for First In First Out. Under this method of inventory valuation, the sale of goods…

Answered: If Exxon uses FIFO for its inventory…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

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Dollar-value LIFO method. Part A. Marshall Fields Company has a beginning inventory in year one of $1,400,000 and an ending inventory of $1,694,000. The price level has increased from 100 at the beginning of the year to 110 at the end of year one. Calculate the ending inventory under the dollar-value LIFO method. Part B. At the end of year two, Fields' inventory is $1,886,000 in terms of a price level of 115 which exists at the end of year two. Calculate the inventory at the end of year two continuing the use of the dollar-value LIFO method.
Dolan Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2002. Its inventory at that date was $420,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows: Date December 31, 2003 December 31, 2004 December 31, 2005 Inventory at Current Prices $535,000 580,000 676,000 Current Price Index 107 125 130 What is the cost of the ending inventory at December 31, 2003 under dollar-value LIFO? a. $500,000. b. $535,000. c. $505,600. d. $449,400.
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Inventory records for Herb's Chemicals revealed the following: March 1, 2021, inventory: 1,100 gallons @ $7.4 per gallon Purchases: Sales: Apr. 10 620 gals @ $ 7.45 Apr. 5 420 gals Apr. 16 820 gals @ $ 7.50 Apr. 14 720 gals Apr. 23 620 gals @ $ 7.55 Apr. 20 520 gals Apr. 26 720 gals Ending inventory assuming LIFO in a perpetual inventory system would be:
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The inventory of Wildhorse Company on December 31, 2025, consists of the following items. Part 110 111 112 113 120 121 a 122 Quantity 660 1,040 540 210 410 1,700 280 Show Transcribed Text Cost per Unit Net Realizable Value Show Transcribed Text Sales revenue Markdowns $128.00 Sales returns Inventory as of December 31, 2025 81.00 108.00 Markups Markup cancellations 229.50 277.00 Freight on purchases 22.00 324.00 aPart No. 121 is obsolete and has a realizable value of $1.00 each as scrap. (a) Determine the inventory as of December 31, 2025, by the LCNRV method, applying this method to each item. Inventory as of December 31, 2025 $ Markdown cancellations $ (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory. The records of Oriole's Boutique report the following data for the month of April. $100,800 1,800 10,300 $135.00 1,500 8,700 70.00 2,700 103.00 243.00 2,100 281.00 1.00 317.00 Purchases (at cost) Purchases (at sales price) Purchase…
If Exxon uses FIFO for its inventory valuation, calculate the cost of ending inventory and cost of goods sold if ending inventory is 100 barrels of crude oil Beginning inventory and purchases Beginning inventory: Jan 1 March 11 June 1 September 1 December 1 Cost of ending inventory Cost of goods sold Barrels Barrel cost 123 48 63 73 48 355 $94 103 97 92 102 Total cost $11,562 4,944 6,111 6,716 4,896 $34,229
Item 1 Montana Co. has determined its year-end inventory on a FIFO basis to be $649,000. Information pertaining to that inventory is as follows: Selling price $ 610,000 Costs to sell 36,000 Replacement cost 561,000 What should be the reported value of Montana’s inventory? Multiple Choice $574,000. $610,000. $591,000. $561,000.

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