On January 1 of Year 5, Benn Company changed from FIFO to LIFO for income tax and external reporting purposes. At that date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $308,000. The following information is available from Benn’s records for Year 5 through Year 8. Year Ending Inventory on a FIFO Basis Price Index Year 5 $363,000 1.1 Year 6 382,800 1.2 Year 7 443,300 1.3 Year 8 440,000 Required Compute the ending inventory on a dollar-value LIFO basis for Year 5, Year

Q: The following information applies to the questions displayed below.] During the year, TRC…

A: Weighted average cost per unit of inventory Weighted average cost per unit of inventory is…

Q: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.

A: Under FIFO Method, units that come in first will be sold first and the units that come in last will…

Q: What is the Cost of Goods Available for Sale for the year? Beginning Inventory: $10,000 Purchase…

A: The price of the raw materials and labor used to produce the completed goods that a company has on…

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

A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…

Q: following information pertains to the inventory of Parvin Company: an. 1 Beginning inventory pr. 1…

A: The inventory can be valued using various methods as LIFO and FIFO. LIFO stands Last In First Out…

Q: Assume Maple Corp. has just completed the third year of its existence (year 3). The table below…

A: Here the difference  will be temporary difference only

Q: None

A: Detailed explanation:1. number and cost of goods available for sale : # of unitsUnit…

Q: Inventory Year-End Costs Cost Index December 31, 2004 $438,000 1.05 December 31, 2005 460,000…

A: The right answer is option c. $368,400

Q: During the year, TRC Corporation has the following inventory transactions.For the entire year, the…

A: Inventory valuation is a method of finding the actual cost of the goods left unsold at the end of a…

Q: Computing Ending Inventory using Dollar-Value LIFO On January 1 of Year 5, Benn Company changed from…

A: The LIFO method states that the most recent or last purchases are sold first. The cost of goods sold…

Q: C has beginning inventory for the year of $12,000. During the year, ABC purchases inventory for…

A: Solution: Cost of goods sold is the cost of total goods available for sale reduced by ending…

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

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

Q: On April 1, Year 3, River's Inc. purchased inventory for $20,000 by signing a 1-year note payable…

A: Note payable is one of liability being incurred in business, on which regular interest payments…

Q: Required information Use the following information for the Exercises below. [The following…

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

Q: A company has only one inventory pool. On December 31, Year 1, the company adopted the dollar-value…

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

Q: 5. Recording and Reporting a LIFO Reserve At the end of the annual accounting period, the inventory…

A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…

Q: Kante Company uses periodic FIFO for its internal report and periodic LIFO for its external reports.…

A: Calculate pretax income (LIFO) would Kante reports in external reports as show:

Q: A company has the following information available that was used to report inventory using the…

A: Most of ending inventory is to be reported at cost index 1.06

Q: Inventory Turnover and Days’ Sales in Inventory W. Glass & Company reported the following…

A: Days sales in inventory is calculated by dividing number of days in a year by inventory turnover…

Q: Marigold Inc. reported total assets of $2391000 and net income of $318000 for the current year.…

A: Beginning inventory is not reported on the balance. Beginning inventory is used for the calculate…

Q: Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was…

A: As at January 1, 2021, 28000 units at $25 each, the Inventory was $700,000

Q: Computing Ending Inventory using Dollar-Value LIFO On January 1 of Year 5, Benn Company changed from…

A: Dollar value LIFO method: This method is different model for the last-in first layering model. Under…

Q: For the quarter ended September 30, the amount of net income that Rouge should report is

A: Given information is: Rouge Company’s $264,000 net income for the quarter ended September 30…

Q: c. 9,000 units remained in inventory at the end of 2021. Required: 1. Ignoring income taxes, prepare…

A: Accounts title Debit Credit Retained earnings (WN A) 20,000   Merchandise inventory   20,000…

Q: s

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

Q: e Westmoreland Corporation uses a periodic system for its inventory. The company starts the current…

A: Cost is the expenses which have been incurred for production, marketing and selling a product, from…

Q: NewCorp reported $367,000 of inventory on January 1 when the company decided to adopt Dollar-Value…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Hot Pepper Company had the following information in its accounting records at year end: Inventory…

A: A formal account record called a journal entry is used in an organization's accounting system to…

Q: was overstated by $25000 at the beginning of the year (this was not corrected). What is the…

A: Net profits will be underestimated if beginning inventory is overstated. To rectify this we need to…

Q: The following information pertains to the inventory of Parvin Company: Jan. 1 Beginning inventory…

A: There are various inventory valuation methods to determine the cost of goods sold and end inventory…

Q: Prepare the journal entry to record the LIFO adjustment. See the information below: The balances in…

A: To record the LIFO adjustment, you need to consider the change in the Ending Inventory at Base Year…

Q: Apply the COGS equation used on the bottom of page 6-3 of the VLN to the following data set to…

A: The cost of goods sold is calculated as difference between cost of goods available for sale and…

Q: Sheridan Inc. reported total assets of $2395000 and net income of $322000 for the current year.…

A: Ans. If the inventory at the beginning of the year is overstated then it results in understatement…

Q: On 1/1/21, Shaye Corp. changed its inventory method to FIFO from LIFO for both financial and income…

A: A change in accounting principles is a change in the method used, such as using a different…

Q: The comparative inventory balances for December 31, end of the year, for a company are provided…

A: Horizontal analysis is prepared to calculate the variance from previous year by showing…

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

A: Businesses utilize methods to determine the value of their inventory listed on the balance sheet..…

Q: Wildhorse Company had a January 1 inventory of $295000 when it adopted dollar value LIFO. During the…

A: Cost of goods sold means actual cost of goods that are being sold to customers. Gross profit means…

Q: Victor Manufacturing Co., switched from FIFO to LIFO on January 1, 2004 for external reporting and…

A: The dollar value correlated with the items in inventory at the close of an accounting cycle is known…

Q: Crane Company had a January 1 inventory of $298000 when it adopted dollar-value LIFO. During the…

A: Answer:-  FIFO meaning:- FIFO is one of the inventory valuation method. According to the first in,…

Q: Esquire Incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the…

A: There are several method which can be used for recording inventory transactions in business. LIFO is…

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.