Pharoah Lighting had a beginning inventory of 35 units at a cost of $7 per unit on August 1. During the month, the following purchas and sales were made. Purchases August 5 August 11 August 23 39 units at $8 50 units at $9 45 units at $10 Sales August 2 August 10 August 19 August 21 29 units 34 units 65 units 34 units Pharoah uses a periodic inventory system. Determine ending inventory and cost of goods sold under: 1. FIFO and 2. LIFO.

Q: Define sales journal.

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Define warehouse receipt financing

A: A warehouse receipt is a document of proof about the ownership of goods kept in that warehouse.

Q: Distinguish between Income and Expenditure Account and Receiptand Payment Account.

A: Difference between income and expenditure account and receipt and payment account:

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.