Pam’s Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of 60 items at $350 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records.   Date Transaction Description March 5 Purchased 50 items @ $370 April 10 Sold 30 items @ $450 June 19 Sold 60 items @ $450 September 16 Purchased 70 items @ $390 November 28 Sold 45 items @ $480   a. Record the inventory transactions in general journal format. b. Calculate the  sales,cost of goods sold and gross margin Pam’s Creations would report on the Year 2 income statement. c. Determine the ending inventory balance Pam’s Creations would report on the December 31, Year 2, balance she

Q: Pina Vision Inc. opened for business on Jan 1, and uses a perpetual inventory system. During…

A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…

Q: Seif Company sells many products. chairs is one of its popular items. Below is an analysis of the…

A: Lets understand the basics. Inventory refers to the amount of goods or merchandise which the company…

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: 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: The following inventory transactions apply to Green Company for Year 2. January 1 April 1 August 1…

A: Inventory can be defined as the stock of goods or products that is manufactured and stored by the…

Q: Flint Ltd. had beginning inventory of 51 units that cost $100 each. During September, the company…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

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

A: Step 1: LIFO Method is the method of inventory costing. It states that the inventory that is bought…

Q: Iculate the ending balance in inventory on May 31 using the first-in, first out (FIFO) method.

A: There are methods to control the inventory of a business such s LIFO, FIFO, average stock level,…

Q: 2. Ch. 5: Measuring Inventory using FIFO, LIFO, and Average-Cost: ABC Company carries a merchandise…

A: One of the benefits of Using FIFO instead of other inventory valuation techniques like LIFO…

Q: The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records…

A: Perpetual inventory System  means tracking of inventory ‘perpetually’ as it moves throughout the…

Q: depreciation is used. Determine the value of a specially built delivery truck for ABC Piano Moving…

A: Under straight line depreciation method, the depreciation for each year would be same. The decrease…

Q: Simple Plan Enterprises uses a periodic inventory system. Its records showed the following:…

A: Inventory Turnover ratio = Cost of goods sold /  Average Inventory  Average inventory = ( Opening…

Q: 2) Orpa Company had a beginning inventory of 430 units with a total cost of $2,580. During the year…

A: Total units available for sale = Beginning units + Purchases  = 430+600+700+450+550 = 2730 units…

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: Boxwood Company sells blankets for $31 each. The following was taken from the inventory records…

A: FIFO is the first in first out method which helps in inventory valuation. Here inventory purchases…

Q: The Hat Store had the following series of transactions for Year 2. Description 35 units @ $19.50 200…

A: First in first out (FIFO): It implies an inventory valuation method used by the business to record…

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

A: The income statement can be prepared using various methods as FIFO, LIFO and weighted average…

Q: The Boxwood Company sells blankets for $40 each. The following was taken from the inventory records…

A: Correct option is d.$56

Q: Vaughn Department Store uses a perpetual inventory system. Date M Number of Units Unit Cost

A: the perpetual inventory system provides businesses with a more efficient and accurate way to…

Q: Current Attempt in Progress Pina Colada Corp. uses a perpetual inventory system. The company had the…

A: Journal entries are the basic method for recording financial transactions in the books of accounts.…

Q: Pam's Creations had the following sales and purchase transactions during Year 2. Beginning inventory…

A: The FIFO method is a widely used inventory valuation technique that provides a systematic and…

Q: The Boxwood Company sells blankets for $35 each. The following was taken from the inventory records…

A: FIFO is the method of valuation of inventory in which the earliest inventory hold by the…

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

A: FIFO means First in first out. Inventory which entered first will be used first.

Q: The Boxwood Company sells blankets for $31 each. The following was taken from the inventory records…

A: FIFO, LIFO and weighted average cost are the three methods used to value the inventory in an…

Q: Tyler Company has the following information related to purchases and sales of one of its inventory…

A: Calculating the ending inventory and cost of goods sold using the FIFO  is as follows:

Q: The Boxwood Company sells blankets for $33 each. The following was taken from the inventory records…

A: The perpetual inventory system involves the continuous updating of inventory records. These updates…

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

A: Here in this question, we are required to calculate the cost of goods sold using LIFO method under…

Q: Required information   [The following information applies to the questions displayed below.]…

A: First-in-first-out (FIFO): It implies to one of the methods that is used by the business in the…

Q: formation about Vinzant Company's inventory of one item follows. Explanation Beginning inventory,…

A: LIFO stands for Last in Firts out. FIFO stands for first in first in first out.The ending inventory…

Q: Required information [The following information applies to the questions displayed below.] Pam's…

A: The gross profit is calculated as the difference between the sales and cost of goods sold. The net…

Q: Required information [The following information applies to the questions displayed below.] Laker…

A: Using LIFO method, the new units are sold first and old units are sold later. LIFO stands for Last…

Q: A review of the accounting records of the Danzee Company yields the following information concerning…

A: Ending inventory is the amount of goods left with the entity. These are reported in the balance…

Q: Sales during the year were 700 units. Beginning Inventory was 400 units at a cost of $10 per unit.…

A: FIFO method uses the inventory which is bought first for the production, but whereas the LIFO method…

Q: Seif Company sells many products. chairs is one of its popular items. Below is an analysis of the…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: The Boxwood Company sells blankets for $40 each. The following was taken from the inventory records…

A: Inventory refers to the stock which is held by the company for resale purposes or the goods that are…

Q: Seifert Company uses the periodic inventory system. At the end of the accounting period, on December…

A: Journal entries refer to transaction recording into the day book of the company or accounts of…

Q: The Boxwood Company sells blankets for $33 each. The following was taken from the inventory records…

A: As per LIFO inventory cost method, the latest units (last units) will be sold first.  Thus the…

Q: Boxwood Company sells blankets for $33 each. The following was taken from the inventory records…

A: LIFO: LIFO means last in first out. Under LIFO method the merchandise purchased at most recent…

Q: The Boxwood Company sells blankets for $35 each. The following was taken from the inventory records…

A: LIFO follows the assumption that the inventory purchased last would be sold first.

Q: determine the cost of goods sold and compute the ending inventory as of Jan. 31 and make the journal…

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

Q: The Boxwood Company sells blankets for $37 each. The following was taken from the inventory records…

A: Inventory is value under FIFO states that the inventory purchased first would be sold first. It is…

Q: Boxwood Company sells blankets for $60 each. The following was taken from the inventory records…

A: Fifo is first in first out method of inventory costing which says that inventory which is purchased…

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.