The beginning inventory was 100 units at P1000 per unit. Purchases for the period were as follows. First batch, 900 units at 1100 per unit P990000, second batch 1500 units at P 1200 per unit 600000. Physical count at the end of the period was 50 units, under FIFO costing, the value of ending inventory would be

Q: A firm has beginning inventory of 150 units at a cost of $10 each.  Production during the period was…

A: FIFO: FIFO stands for First-In, First-Out. As its name suggest, this method assumes that the oldest…

Q: If beginning inventory is 40 units at $4 per unit, purchases are 20 units at $8 per unit and 10…

A: Inventory valuation is based on the flow of inventory and the FIFO method says that the firm should…

Q: Trini Company had the following transactions for the month.   Number of Units Cost per Unit Total…

A: Inventory: Inventory is a physical item of trade sold by suppliers during their accounting period.…

Q: Trini Company had the following transactions for the month.   Number of Units Cost per Unit Total…

A: Average cost per unit = Total cost of Goods available for sale / Total no. of units available for…

Q: A company purchased 200 units for $40 each on January 31. It purchased 150 units for $35 each on…

A: Weighted average inventory costing method: - Weighted average inventory costing method is the method…

Q: The following lots of Commodity Z were available for sale during the year. Use this information to…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Q: rini Company had the following transactions for the month. Number Cost of Units per Unit Total…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: At the beginning of the current period, Viraat Industries, which uses a periodic inventory system,…

A: a. Cost of goods sold = Beginning Inventory units + Purchase #1 units + Purchase #2 40 units =…

Q: Trini Company had the following transactions for the month.   Number of Units Cost per Unit Total…

A: In the case of the FIFO method, the inventory which is purchased first is also sold first. Whereas…

Q: Akira Company had the following transactions for the month.   Number of Units Cost per Unit…

A: Numberof Units Costper Unit Total cost Beginning Inventory 160     $10     $1600 Purchased…

Q: Second: Production and Inventory (finished goods):- Total estimated sales units for product (E) will…

A: To prepare the suitable budgets based on the provided data, we will create the following…

Q: Pacific Company starts the year with a beginning inventory of 3,700 units at $5 per unit. The…

A: FIFO method is an inventory valuation method where inventory that was purchased first will be used…

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: Quick Stop Dairy had beginning inventory of Heavy Cream of 200 units at a cost of $2 each. During…

A: FIFO or First in First out means that the units in beginning inventory and early purchases will be…

Q: Quick Stop Dairy had beginning inventory of Heavy Cream of 200 units at a cost of $2 each. During…

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

Q: Department B had a beginning inventory balance of 150 units. During the accounting period, the…

A: Cost per equivalent unit can be calculated by dividing the total cost by equivalent units. These…

Q: Akira Company had the following transactions for the month.   Number of Units Cost per Unit…

A: First-in, First Out (FIFO) Under the First in first out (FIFO) method of inventory valuation, Cost…

Q: Consider the following transactions for DeTrees Company for the month shown in chronological order:…

A: The weighted average cost per unit is calculated as total cost divided by no. Of units.

Q: Akira Company had the following transactions for the month.   Number of Units Cost per Unit…

A: Introduction: FIFO: FIFO stands for First in First out. Which means first received inventory to be…

Q: In its first month of operations, Crane Company made three purchases of merchandise in the following…

A: Calculate the average unit cost.

Q: The inventory of Royal decking consisted of five products. Information about the December 31. 2021,…

A: LCM stands for Lower of cost or market method which is used to value the inventory through comparing…

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.