Knowledge Check 01 Assume that we use a perpetual inventory system and that five identical units are purchased at the following four dates and costs April 5 $ 10 April 10 $ 12 ⠀⠀ April 15 $14 April 20 $ 16 April 22 $ 17 One unit is sold on April 25. The company uses the weighted average inventory costing method.

Q: Addison, Inc. uses a perpetual inventory system. Below is information about one inventory item for…

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

Q: Crane Company uses a periodic inventory system and reports the following for the month of June. Date…

A: FIFO: "First-In, First-Out" - Items purchased or produced first are sold or used first.LIFO:…

Q: Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances…

A: “Since you have posted a question with multiple sub-parts, we will solve first 3 subparts for you.…

Q: The beginning inventory, purchases, and sales for Myrl Sign Company for the month of April are…

A: The cost of goods sold includes the total cost of goods sold during the period, and ending inventory…

Q: Assume that three identical units of merchandise are purchased during October, as follows:…

A: FIFO: FIFO stands for First in First out which means the first received inventory to be sold first.

Q: April 5 April 10 April 15 April 20 April 22 ne unit is sold on April 25. The c entify the cost of…

A: Answer : Ending inventory = Total number of unit purchase - Unit sold Ending inventory = 5 - 1 = 4…

Q: Flounder Corp. uses a periodic inventory system and reports the following for the month of June.…

A: Determine weighted-average cost per unit.

Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…

A: Perpetual and periodic are the two inventory system methods. Under perpetual inventory system, the…

Q: Exercise 6-05 Sage Hill Inc. uses a periodic inventory system. Its records show the following for…

A: Number of units in ending inventory = Total Units - Units sold = 100 - 78 = 22 units

Q: Monty Corp. uses a periodic inventory system reports the following for the month of June. Date…

A: Perpetual Inventory system is a form of inventory valuation where the computation on inventory…

Q: The following units of a particular item were available for sale during the calendar year: Date…

A: Inventory valuation is a process or accounting practice to determine the value of unsold goods at…

Q: A company reports the pilowing beginning 450 units. Ending inventory at January 31 totals 170 units.…

A: LIFO - Last in first out means that the units purchased latest will be sold first , therefore the…

Q: Atlas Company uses the perpetual inventory costing system. The company has provided the following…

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

Q: OBJ. 2 - Describe three inventory cost flow assumptions and explain how they impact the income…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Assume that we use a perpetual inventory system and that five identical units are purchased at the…

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

Q: Culver Inc. uses a perpetual inventory system. Its records show the following for the month of May.…

A: FIFO, or "First-In, First-Out," is a method of inventory management where the oldest items are sold…

Q: Oriole Company uses a perpetual inventory system and reports the following for the month of June.…

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

Q: Sunland Company uses a perpetual inventory system and reports the following for the month of June.…

A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

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

Q: Assume that we use a perpetual inventory system and that five identical units are purchased at the…

A: LIFO Method :— It is one of the method of inventory valuation in which recent purchases is used for…

Q: Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and…

A: Periodic inventory system is a system where cost of goods sold is not updated simultaneously. At…

Q: Date 1-Nov 4-Nov 15-Nov 17-Nov 28-Nov 30-Nov Description Beg. Inventory Purchased Sold Purchased…

A: Lets understand the basics.Cost of goods sold and inventory can be calculated using,(1) FIFO(2)…

Q: Culver Corporation uses a periodic inventory system and reports the following for the month of June.…

A: FIFO Cost of ending inventory  (210 x 7) + (40 x6) = 1710 Cost of goods sold = (100 x 5) + (325 x6)…

Q: Weighted average cost flow method under perptual inventory system.  The following units of a…

A: Weighted average cost flow method: Under average cost method, company calculates a new average after…

Q: A company reports the following beginning inventory and 2 purchases for the month of January. On…

A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…

Q: Perpetual FIFO: Goods purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of…

A: FIFO Method-First-In, First-Out Under this method , oldest products  of a company's inventory  is…

Q: Larkspur, Inc uses a periodic inventory system and reports the following for the month of June. Date…

A: Units Sold = Units available for sale - Units in ending inventory Units Sold = 670 - 203…

Q: Blossom Company uses the perpetual inventory system and had the following purchases and sales during…

A: Organization follows two type of inventory systems. (1) Perpetual inventory system (2) Periodical…

Q: Akira Company had the following transactions for the month. Number Total of Units Cost Beginning…

A: The process of evaluating an inventory is an essential part of accounting. It assists in valuing the…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: clsoing inventory = opening inventory + purchase - sales

Q: Calculate cost of the ending inventory and the cost of goods sold for each cost flow assumption,…

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

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

Q: Akira Company had the following transactions for the month.   Number of Units Total Cost Beginning…

A: Weighted Average cost per unit=Total costTotal Units=$5,610450=$12.47

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: Opening Stock = 350 units @ $3.40 Goods Purchased on Jan 9 = 80 units @  $3.60 Goods Purchased on…

Q: Assume the following beginning inventory, purchases, and sales during the month of April: April 1…

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

Q: Wildhorse Company uses a periodic inventory system and reports the following for the month of June.…

A: Periodic Inventory System: Periodic inventory system is a system, in which the inventory is updated…

Q: a. Novak Inc. uses a perpetual inventory system. Its records show the following for the month of…

A: Here in this question we are required to calculation COGS and ending inventory under FIFO basis.…

Q: Sandhill Company uses a perpetual inventory system and reports the following for the month of June.…

A: The Weighted Average Cost method is an inventory valuation method under which all the costs are…

Q: Atlas Company uses the perpetual inventory costing system. The company has provided the following…

A: LIFO is last in first out method means inventory bought last is sold first.Inventory means the…

Q: ossom Company uses a perpetual inventory system and reports the following for the month of June.…

A: Cost of goods available for sale = $560+$2016+$1,330 = $3,906 Weighted average cost per unit:…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: No. of Units Cost per unit Jan 1 250 2.30 Jan 9 60 2.50 Jan 25 100 2.64

Q: Assume the following beginning inventory, purchases, and sales during the month of April: April 1…

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

Q: Anthony Company uses a perpetual inventory system. It entered into the following purchases and sales…

A: Cost of good available for sale is equal to cost of beginning inventory and total cost of purchases…

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.