June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 10 units that cost $22 per unit. During the current month, the company purchased 60 units at $20 each. Sales during the month totaled 45 units for $43 each. What is the cost of goods sold using the FIFO method? a. $200. b. $900. c. $920. d. $1,935.

Q: Sheffield Corp. uses a periodic inventory system. Its records show the following for the month of…

A: FIFO Method assumes that goods purchased first are sold first which means closing stock will…

Q: The following lots of a particular commodity were available for sale during the year: Beginning…

A: A periodic inventory system or the periodic inventory method is an accounting method in which one…

Q: marquis company uses a weighted averahe perpetual inventory system and has the following ourchases…

A: Formula: Average price per unit = Total purchase value / number of units Division of total purchase…

Q: Suppose that Sheridan has the following inventory data: Nov. 1 Inventory 10 units @ $6 each Purchase…

A: First in, first out (FIFO) is an inventory method that assumes the first goods purchased are the…

Q: Hermani Company uses the periodic inventory system. Hermani started the period with $100,000 in…

A: When a physical inventory count is performed, a periodic inventory system only updates the ending…

Q: Vaughn Company uses a perpetual inventory system. Its beginning inventory consists of 88 units that…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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: The Boxwood Company sells blankets for $38 each. The following was taken from the inventory records…

A: The LIFO method assumes that the goods purchased last will be sold out first, and hence the cost per…

Q: he accounting records of Americo Electronics show the following data. Beginning inventory   3,000…

A: Inventory Valuation is done in every organization. The inventory valuation is done under three types…

Q: Use the information below to answer the following question. Boxwood Company sells blankets for $60…

A:

Q: During the months of January, Pearson Corporation sold goods to customers. Assume Pearson uses a…

A: Sales revenue:  It can be defined as the amount that is earned by the business from selling its…

Q: Sheridan Company uses the periodic inventory system. For the current month, the beginning inventory…

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

Q: Oriole Company Inc. had a beginning inventory of 105 units of Product RST at a cost of $7 per unit.…

A: aCost of goods available for sale$ 15,195…

Q: Marquis Company uses a weighted-average perpetual inventory system and has the following purchases…

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

Q: Pair Company sells one product and uses the last-in, first-out (LIFO) method to determine inventory…

A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…

Q: Sarasota Corp. uses a perpetual inventory system. The company had the following inventory…

A: Introduction: Journal entry is used to document a commercial transaction in a corporation's…

Q: King Company had 25 units @$5 in beginning inventory; bought 30 units @$6 and then sold 50 units.…

A: The first in first out is a method to account for inventory, according to this method the entity…

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: Prepare partial income statements for 2022 through gross profit, under each of the following cost…

A: In periodic inventory system, the entire material is physically counted and the value of ending…

Q: A company using the periodic inventory system has merchandise inventory costing $333 on hand at the…

A: Formula to calculate cost of merchandise sold: Cost of merchandise sold = Opening merchandise…

Q: Assume that Sunland Company uses a periodic inventory system and has these account balances:…

A: Calculate cost of goods sold and gross profit:

Q: Vargas Company uses the perpetual inventory system and the FIFO cost flow method. During the current…

A: The cost of goods sold (COGS) is the "direct cost" of producing any products or services. It is…

Q: The following units of an item were available for sale during the year: Beginning inventory 45…

A: a. Compute the total cost of the ending inventory according to FIFO.

Q: Sandhill Department Store uses a perpetual inventory system. Data for product E2-D2 includes the…

A: Lets understand the basics. In perptual method weighted average basis, average is calculated for the…

Q: Chou Sales Corporation uses the periodic inventory system. On January 1, 2018, Chou had 1,000 units…

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

Q: Salmone Company reported the following purchases and sales for its only product. Salmone uses a…

A: Cost of goods sold: Cost of goods sold is the accumulate total of all direct cost incurred in…

Q: The Boxwood Company sells blankets for $ 36.00 each. The following was taken from the inventory…

A: First-In-First-Out (FIFO): It refers to a method of inventory valuation used by the business in…

Q: Upland Co.'s inventory records showed the following data accounted for in a perpetual inventory…

A: First in First out, this method assumes that the inventory purchased first is sold first and…

Q: Sunland Company sells one product and uses a perpetual inventory system. The beginning inventory…

A: LIFO is the Last in first out method of inventory which says that inventory purchased last will be…

Q: Ballard Company uses the perpetual inventory system. The company purchased $8,700 of merchandise…

A: Gross margin = Sales revenue - Cost of purchase

Q: Bramble Inc. uses a periodic inventory system. Its records show the following for the month of May,…

A: Valuation of inventory is one of useful concept used in cost accounting. Several methods that are…

Q: The Boxwood Company sells blankets for $30.00 each. The following was taken from the inventory…

A: Particulars No. of Units Cost per unit Total Value May 03 Purchase (23-9-12 units)  2 $10…

Q: Oriole Company Inc. had a beginning inventory of 105 units of Product RST at a cost of $7 per unit.…

A: b1. 8.886b2. FIFOLIFOAverage Costending inventory cost2,350…

Q: Sales during the year were 545 units. Beginning inventory was 430 units at a cost of $6 per unit.…

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

Q: Calculate the weighted-average unit cost for each sale. (R

A: The weighted average cost method is an inventory accounting method.It is calculated by the cost of…

Q: Courtney Company uses a periodic Inventory system. The following data were available: beginning…

A: Inventory management:Inventory management refers to the system of ordering, storing, and, using the…

Q: Oriole Company's inventory records show the following data: Inventory: January 1 Purchases: June 18…

A: Weighted Average Method :— It is one of the method of inventory valuation in…

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

A: >Cost flow from units purchased to Cost of goods sold can be done using either of the 4 methods:…

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.