R. & K. Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: Units Unit Price Total Cost Jan. 1 Beginning inventory 20 $12 $240 Apr. 2 - 1st Purchase 30 $13 390 Ailig. 6 - 2nd Purchase 25 $14 350 Nov. 9 - 3rd Purchase 25 $18 450 $1,430 here are 20 units of inventory on hand at December 31, 20--. 1. Calculate the total amount to be assigned to the ending inventory under each of the following methods: a. First-in, first-out (FIFO) %24 b. Last-in, first-out (LIFO) 24 2. Assumê the market price per unit (cost to replace) of the R. &. K. Company's inventory on December 31, was $16. the total amount to be assigned to the ending inventory on December 31, under each of the following methods:

R. & K. Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: Units Unit Price Total Cost Jan. 1 Beginning inventory 20 $12 $240 Apr. 2 - 1st Purchase 30 $13 390 Ailig. 6 - 2nd Purchase 25 $14 350 Nov. 9 - 3rd Purchase 25 $18 450 $1,430 here are 20 units of inventory on hand at December 31, 20--. 1. Calculate the total amount to be assigned to the ending inventory under each of the following methods: a. First-in, first-out (FIFO) %24 b. Last-in, first-out (LIFO) 24 2. Assumê the market price per unit (cost to replace) of the R. &. K. Company's inventory on December 31, was $16. the total amount to be assigned to the ending inventory on December 31, under each of the following methods:

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Description: R. & K. Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:UnitsUnlt PriceTotal CostJan. 1 Beginning inventory20$12$240Apr. 2 - 1st Purchase30$13390Aig. 6 - 2nd Purchase25$14350Nov. 9 - 3rd Pu

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 7SPB: COST ALLOCATION AND LOWER-OF-COST-OR-MARKET Hall Companys beginning inventory and purchases during...

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Concept explainers

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.

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Question

R. & K. Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:
Units
Unlt Price
Total Cost
Jan. 1 Beginning inventory
20
$12
$240
Apr. 2 - 1st Purchase
30
$13
390
Aig. 6 - 2nd Purchase
25
$14
350
Nov. 9 - 3rd Purchase
25
$18
450
$1,430
There are 20 units of inventory on hand at December 31, 20--.
1. Calculate the total amount to be assigned to the ending inventory under each of the following methods:
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
2. Assumé the market price per unit (cost to replace) of the R. &. K. Company's inventory on December 31, was $16. Calculate
the total amount to be assigned to the ending inventory on December 31, under each of the following methods:
a. FIFO lower-of-cost-or-market
b. Weighted-average lower-of-cost-or-market

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