Prepare the journal entry to record the LIFO adjustment. See the information below: The balances in Inventory – Finished Goods for the first and second year that WTG was in business were $275,000 and $350,000, respectively. The relevant indices for the 4 years are as follows: Year 1: 100 Year 2: 101 Year 3: 102 Year 4 (Current Year): 103 The computation of LIFO is included in the “Inventory” spreadsheet attached

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

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A: AmountGoods purchased$70,700Less: Goods returned$3,800Less: Cost of goods sold$53,700Perpetual…

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A: First-in-First-Out (FIFO): In First-in-First-Out method, the costs of the initially purchased items…

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A:

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Q: what is the number of days' sales in inventory

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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.