Sandvik Mining uses a periodic inventory system. One of the company’s products is a special equipment for the oil drilling rig. The inventory quantities, purchases and sales of this equipment for the most recent year are as follows:   Using the periodic costing procedures, compute the cost of December 31 inventory and the cost of goods sold for the year under each of the following cost assumptions: First-in, first-out Last-in, first-out Average cost (round to the nearest dollar, except unit cost)

Q: Novak Marine Products began the year with 8 units of marine floats at a cost of $11 each. During the…

A: Lets understand the basics. Inventory Valuation Methods are used to determine…

Q: The following lots of a particular commodity were available for sale during the year Beginning…

A: The stock of items in which firm deals are recorded as inventory in the books of the firm. The…

Q: Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to…

A: In case of multiple sub parts only first 3 could be solved as per company policy.

Q: In using average method, Cruz Company produces a product that undergoes three processes and the…

A: In the process costing goods are transferred from one department to other after calculating all the…

Q: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.

A: Under FIFO Method, units that come in first will be sold first and the units that come in last will…

Q: The Ogale Equipment Corporation maintains a general ledger account for each class of inventory,…

A: Serial No Date Description Debit Credit 1 Jan 2,2021 Account Receivable $ 8,100…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: As per last-in, first-out method units sold from inventory are the units that have been purchased…

Q: Howard Print Shop prepares the following schedule and financial statements on a yearly basis: Among…

A: Financial statements are documents that show how a firm's financial performance has changed over the…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. The…

Q: The cost of goods sold for the year is: Multiple Choice O $176.100. O $115.300. O $63.300. O…

A: The direct expenses of manufacturing the products that a business sells are referred to as its cost…

Q: Late in the year, Software City began carrying WordCrafter, a new word processing software program.…

A: a. On December 31, Software City takes a physical inventory and finds that all 34 units of Word…

Q: Sports Haven keeps an inventory of FITBIT Wearable Technology.  Assume an inventory of 35 FitBits at…

A: FIFO is first in first out method of inventory management and valuation, under which inventories…

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: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

Q: Bonita Industries reported the following year-end information: beginning work in process inventory,…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: 1)Coronado Industries reported the following year-end information: beginning work in process…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Fulbright Corporation uses the periodic inventory system. During its first year of operations,…

A: The objective of the question is to calculate the ending inventory of Fulbright Corporation using…

Q: 1)Coronado Industries reported the following year-end information: beginning work in process…

A: Particulars                                                                       Amount ($) Cost of…

Q: Use LIFO to determine the cost of the ending inventory.

A: The method of inventory which is to be used for the valuation of the inventory is the last in first…

Q: Prepare the necessary journal entries from the following Information for Welsh Company, which uses a…

A: Only finished goods are transferred to WIP.  Direct labor is WIP cost and Indirect labor is…

Q: Determine the cost of goods sold under LIFO:

A: Answer Cost flow statement using LIFO     Cost of Goods Available for Sale     Cost of Goods Sold…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Inventory cost valuation has different kinds of following methods: a) FIFO: Under this method, it is…

Q: Bramble Corp. began the year with 10 units of marine floats at a cost of $12 each. During the year,…

A: First in first out: It refers to the method of inventory valuation that calculates the balance of…

Q: Number of Units Cost per Unit $10 Beginning inventory Purchased Mar. 31 Purchased Oct. 15 Ending…

A: First in First out (FIFO) Methods says that goods purchased first are Sold first which implies that…

Q: Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period…

A: Perpetual inventory system is a system where the cost of goods sold is updated as soon as the goods…

Q: Sheffield Corp. reported the following year-end information: beginning work in process inventory,…

A: Cost of goods sold includes all those materials that are related to production of goods that is cost…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: Under the FIFO method, the oldest products in inventory are sold first. Under the LIFO method, the…

Q: Prepare the necessary journal entries from the following information for Welsh Company, which uses a…

A: Journal entries recording is the first step of accounting cycle process, in which atleast one…

Q: 1. Prepare the entries to record the write-down of this inventory to the lower-of-cost-or-market at…

A: The perpetual inventory system uses technology to track and update inventory records following each…

Q: Crane Marine Products began the year with 10 units of marine floats at a cost of $13.60 each. During…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

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.