Desmond Consolidated, Inc. is a leading manufacturer of steel products. The following inventory data relates to the firm’s production during the first quarter of 2020:At the end of the first quarter of 2020, Desmond’s internal auditors determined that 1,700 tons of raw steel had been processed and sold.Assume that the net realizable value per ton is $38.50 at the end of the quarter. What amount should Desmond’s ending inventory be valued at on its March 31 balance sheet under each of the following methods? FIFO, LIFO and Weighted-Average? P6.23Calculating the Value of Ending Inventory and Cost of Goods Sold: Periodic Method.solidated, Inc. is a leading manufacturer of steel products. The following inventory data relates to the firm'sproduction during the first quarter of 2020:Desmond Con-Tons of RawPurchase PriceTotalDate of PurchaseSteel Purchasedper TonCost$38$19,00024,5006,600Jan. 1500Jan. 1570035Feb. 7.Feb. 21.March 15.200334503013,50015,050350432,200$78,650

Inventory: It refers to the items held by an organization which were in various forms like raw…

Answered: P6.23 Calculating the Value of Ending…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Desmond Consolidated, Inc. is a leading manufacturer of steel products. The following inventory data relates to the firm’s production during the first quarter of 2020:

At the end of the first quarter of 2020, Desmond’s internal auditors determined that 1,700 tons of raw steel had been processed and sold.

Assume that the net realizable value per ton is $38.50 at the end of the quarter. What amount should Desmond’s ending inventory be valued at on its March 31 balance sheet under each of the following methods? FIFO, LIFO and Weighted-Average?

P6.23
Calculating the Value of Ending Inventory and Cost of Goods Sold: Periodic Method.
solidated, Inc. is a leading manufacturer of steel products. The following inventory data relates to the firm's
production during the first quarter of 2020:
Desmond Con-
Tons of Raw
Purchase Price
Total
Date of Purchase
Steel Purchased
per Ton
Cost
$38
$19,000
24,500
6,600
Jan. 1
500
Jan. 15
700
35
Feb. 7.
Feb. 21.
March 15.
200
33
450
30
13,500
15,050
350
43
2,200
$78,650

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