Joe's company began the year with 10,000 units of inventory on hand. The cost of each unit was $5.00. During the year, the following transactions took place: An additional 30,000 units were purchased at $6 each 20,000 units were sold at $10 each. 20,000 units remained on hand at the end of the year. The company uses a periodic inventory system.   Prepare the journal entries for the year using FIFO (including the sales entry and the adjusting entry). Prepare the journal entries using LIFO

Q: Tomorrows Electronic Center began July with 90 units of merchandise inventory that cost $60 each.…

A: It is important for businesses to carefully evaluate their inventory needs and select the method…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: As per last-in, first-out method units sold from inventory are the units that have been purchased…

Q: Marvin Company has a beginning inventory of 12 sets of paints at a cost of $2.00 each. During the…

A: To solve this problem, we need to determine the number of paint sets in the ending inventory and…

Q: company uses the perpetual inventory system, it began operations in October. October through…

A: AmountGoods purchased$70,700Less: Goods returned$3,800Less: Cost of goods sold$53,700Perpetual…

Q: eminole Company began the year with 23,000 units of product in its January 1 inventory costing $15…

A: 1. First In First Out (FIFO): Under this method, inventory is valued assuming that the units…

Q: At the beginning of the year, Grouper Ltd. had 910 units with a cost of $5 per unit in its beginning…

A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…

Q: ne product and uses a pe

A: Option D is correct 204 units  Calculation :   Units in the ending inventory = ( units in beginning…

Q: Dobler Company uses a for the inventory accc

A: Selling units we can calculate by adding inventory beginning with purchases and then subtracting it…

Q: Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December…

A: Inventory Costing Method:- There are various methods used for valuation of inventory in the income…

Q: Sandhill Corporation uses the perpetual inventory system and began business on April 1. During the…

A: The perpetual inventory system records the purchase of goods by debit inventory account. Under…

Q: Contemporary Electronic Center began October with 90 units of merchandise inventory that cost $60…

A: The objective of the question is to calculate the ending inventory and cost of goods sold (COGS)…

Q: In its first month of operations, Sunland Company made three purchases of merchandise in the…

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

Q: Sunland Company had a beginning inventory on January 1 of 180 units of Product 4-18-15 at a cost of…

A: The LIFO strategy works under the presumption that the last item of stock acquired, is the item that…

Q: a company has a beginning inventory of 32 units at a cost of 12.00 each on oct. 1. on October 5, it…

A: Inventory valuation refers to the technique that is used by businesses to identify the value of the…

Q: Ali Baba Tours uses a perpetual inventory system. Selected transactions for the month of July are…

A: FIFO states that the inventory that is purchased first by the company would be sold first. Whereas,…

Q: A company has beginning inventory of 300 units at $ 16.75 each; They purchased 400 units at $ 6.51…

A: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell out…

Q: Suppose GameStop Company uses a periodic inventory system. Details for the inventory account for the…

A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…

Q: On January 1, Veltron International has inventory worth $599,900 at cost. At the end of the year,…

A: Inventory turnover is the number of times inventory is sold and replaced during the year. It…

Q: FIFO periodic inventory method

A: Under FIFO periodic inventory method, the inventories first entered into the store are issued or…

Q: Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available…

A: Lets understand the basics. Inventory can be calculated using either of, (1) First In First Out…

Q: At the beginning of the year, Blue Ltd. had 900 units with a cost of $7 per unit in its beginning…

A: The journal entries are prepared to record the transactions on regular basis. The cost of goods sold…

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Ending Inventory = Total Cost of goods - Cost of goods sold

Q: A company is preparing its financial statements and needs to complete the following calculations…

A: The Cost of Goods Sold (COGS) is calculated using the formula: COGS = Beginning Inventory +…

Q: or XYZ company, the following lots of a particular commodity were available for sale during the…

A: Solution- Fifo method- First 10 units takes from the beginning inventory= 10 * 60=$600 than rest 15…

Q: Seneca Co. began the year with 6,500 units of product in its January 1 inventory costing $35 each.…

A: Given: Seneca Co. began the year with 6,500 units of product in its January 1 inventory costing $35…

Q: Crane Enterprises uses a periodic inventory system for buckets it sells. It had a beginning…

A: The question is based on the concept of Cost Accounting.

Q: Swifty uses the periodic inventory system. For the current month, the beginning inventory consisted…

A: LIFO, or Last-In, First-Out, is an inventory valuation method where the most recently acquired items…

Q: Crane Corporation uses the perpetual inventory system and began business on April 1. During the…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: The Corton Company uses a periodic inventory system. For the month of October, the beginning…

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

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

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: What is the amount of the inventory at the end of the year using the LIFO method?

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

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Meaning of First In First Out :-  First In, First Out, also known as FIFO, is a method for valuation…

Q: Dublin Corporation provides the following information related to its inventory during the month of…

A: Answer:-The inquiry pertains to calculating inventory balances and the cost of goods sold (COGS) for…

Q: Seminole Company began the year with 23,000 units of product in its January 1 inventory costing…

A: Under FIFO method the oldest products in inventory have been sold first. Under LIFO method the…

Q: Orion Iron Corporation tracks the number of units purchased and sold throughout each year but…

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

Q: Longmire & Sons made sales on credit to Alderman Sports totaling $900,000 on April 18. The cost of…

A: Journal entry means the books of original entry where the first time transaction is recorded. After…

Q: The Baby Store had a beginning inventory on January 1 of 320 full-size strollers at a cost of $180…

A: Solution : Number of units sold = beginning units + units purchased - ending inventory units = 320 +…

Q: The beginning inventory was 490 units at a cost of S8 per unit. Goods available for sale during the…

A: There are inventory system i.e., periodic inventory system and perpetual inventory system. The…

Q: Vaughn Company uses a periodic inventory system. Details for the inventory account for the month of…

A: The question is asking for the value of the ending inventory of Vaughn Company for the month of…

Q: What is the estimated cost of goods sold at the end of the six-month period using the LIFO retail…

A: Beginning inventory at cost = $70000 Beginning inventory at retail = $100000 Net purchases at cost =…

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.