The annual inventory of Bargain Bonanza, Inc. shows the following information for jackets: Date Qty Cost Total Cost January 1 Beginning Inventory 400 $44 $17,600 February 14 Purchase 150 45 6,750 July 13 Purchase 250 52 13,000 September 2 Purchase 400 71 28,400 October 8 Purchase 200 56 11,200 Total available for sale 1,400   $76,950 If 913 jackets were on hand on December 31, find the value (in $) of the ending inventory using the FIFO method of inventory pricing? $

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A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

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A: FIFO stands for First in and First out. Using FIFO method, the oldest inventory is sold first. The…

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A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

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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: Ending inventory= Total purchases - COGS

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A: First in first out (FIFO): It implies an inventory valuation method used by the business to record…

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A: a. Compute the total cost of the ending inventory according to FIFO.

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A: In case of LIFO method latest goods will be sold first. Thus ending inventory consists of goods…

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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: Solution: Cost of goods sold = sales / 125% = 744000/ 125% = $595,200

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Q: Estimate the ending inventory using the retail inventory method. Re 74%) [Please note it is

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A: 1.1LIFO will result in the highest cost of goods sold figure for January

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.