ormation applies to the questionsts the following beginning inventory andr the month of January. On January 26, theO units. Ending inventory at January 31UnitsUnit Cost380$ 3.70tory on January 1nuary 9903.90nuary 251204.00tual inventory system is used. Determineto ending inventory when costs arethe FIFO method.Perpetual FIFO:Is purchasedCost of Goods SoldnitsCost per Cost of GoodsunitSoldCost perunit# ofunitssoldInventory BalanceCost perunit# of unitsInventoryBalance [The following information applies to the questionsdisplayed below.]A company reports the following beginning inventory andtwo purchases for the month of January. On January 26, thecompany sells 420 units. Ending inventory at January 31totals 170 units.UnitsUnit Cost380$ 3.70Beginning inventory on January 1Purchase on January 9903.90Purchase on January 251204.00Required:Assume the perpetual inventory system is used. Determinethe costs assigned to ending inventory when costs areassigned based on the FIFO method.Perpetual FIFO:Cost of Goods SoldGoods purchasedInDate# of unitsCost perunitCost per Cost of GoodsunitSoldJanuary 1January 9Total January 9January 25Total January 25January 26Total January 26# ofunitssold# of units

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Description: ormation applies to the questionsts the following beginning inventory andr the month of January. On January 26, theO units. Ending inventory at January 31UnitsUnit Cost380$ 3.70tory on January 1nuary 9903.90nuary 251204.00tual inventory system is us

Answer FIFO (First in first out) It is the method of recording inventory in which we assume that the…

Answered: Required: Assume the perpetual…

Business

Accounting

Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

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Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except: Multiple Choice LIFO method. FIFO method. Specific identification method. Weighted average method. Retail method.
A perpetual inventory system has these characteristics:
Which inventory method is least likely to be used under IFRS? A . First in, fi rst out (FIFO).
Explain the differences between a Perpetual Inventory system and a Periodic Inventory System. Explain how one is better than the other.
What is just-in-time (JIT) inventory system?
Identify inventory classifications and different inventory systems.
Identify which of the following statement is correct for perpetual inventory system? When valuing ending inventory under a perpetual inventory system, weighted average cost method requires that a new weighted average unit cost be calculated after every sale. When valuing ending inventory under a perpetual inventory system, valuation using weighted average is the same as the valuation using weighted average under the periodic inventory system. When valuing ending inventory under a perpetual inventory system, oldest units purchased during the period using FIFO are allocated to the cost of goods sold when units are sold. 5 Under the perpetual inventory system, on the purchase of inventory purchase account is debited. 7
Identify four inventory costing methods for assigning cost to ending inventory and cost of goods sold and briefly explain the difference in the methods.