The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10 1st purchase 500 5.20 2nd purchase 700 5.30 3rd purchase   600 5.50 Number of units available for sale 2,100   On hand at end of period   500   Number of units sold during period 1,600   Of the 1,600 units sold during the period, 300 were from the beginning inventory; 500 from the first purchase; 600 from the second purchase; and 200 from the last purchase. Using the specific identification costing method, the value of inventory on hand at the end of the period would be

Q: Using the weighted average method, complete the steps below to calculate the ending inventory units,…

A: Cost of Goods Sold (COGS) is a fundamental accounting metric that represents the direct costs…

Q: The following data regarding purchases and sales of a commodity were taken from the related…

A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: Date Purchases Sales   Units Cost/Unit Units Jan. 1 100 $0.80    Jan. 4 390 0.90   Jan. 5     280…

A: The inventory can be evaluated using various methods as: FIFO, LIFO and Weighted Average method.

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: In first in first out , it is assumed that the goods which are purchased first will be sold first.…

Q: On the basis of the following data, estimate the cost of the inventory at June 30 by the retail…

A: The retail technique calculates a store's closing inventory balance by comparing the cost of…

Q: < 1. Determine the Inventory on March 31 and the cost of goods sold for the three-month period,…

A: The objective of the question is to determine the inventory on March 31 and the cost of goods sold…

Q: The inventory records for Radford Company reflected the following Beginning inventory on May 1 1,600…

A: Cost of goods sold is the amount of cost which is incurred on the making of the goods. It includes…

Q: 20 100 44 40 880 $3,720 60 c. uses weighted-average (periodic) inventory procedures, the end

A: calculation of weighted average Price per unit      = 30 × $28 + 50 ×$40+ 20×$44100 units     =…

Q: The records of Cordova Corp. showed the following transactions, in the order given, relating to the…

A: Lets understand the basics.Under FIFO basis entity assumes that goods purchase first are sold first.…

Q: Salmone Company reported the following purchases and sales for its only product. Salmone uses a…

A: Cost of goods sold: Cost of goods sold is the accumulate total of all direct cost incurred in…

Q: Beginning inventory, purchases, and sales for Item Doodad are as follows: July 1   Inventory 90…

A: Inventory is a stock that the company has held for the resale purpose or the goods that are not sold…

Q: Based on the following data, estimate the cost of ending merchandise inventory using the gross…

A: Cost of goods sold = Sales (net) - gross profit (35% of sales) Cost of goods sold = $729,000 -…

Q: ne following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: COGS stands for Cost of goods sold states the direct costs for producing the goods sold through…

Q: Three identical units of merchandise were purchased during March, as follows: Steele Plate Units…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sold…

Q: Broadway Stores reports the following transactions related to inventory. Broadway sells all products…

A: The perpetual FIFO (First-In-First-Out) method is a method of inventory accounting where the cost of…

Q: The following data represent the beginning inventory and, in order of occurrence, the purchases and…

A: Inventory is valued on the basis of different inventory valuation methods such as LIFO, FIFO, or…

Q: Rock Telecom has budgeted the sales of its innovative mobile phone over the next four months as…

A: Formula: Ending inventory current month = Next month sales units x 10 %

Q: Inventory by Three Methods; Cost of Goods Sold The units of an item available for sale during the…

A: The various methods for inventory valuation are FIFO, LIFO and average method. The FIFO method means…

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: In first in first out , it is assumed that the goods which are purchased first will be sold first.…

Q: Beginning inventory, purchases, and sales for Item Copper are as follows: Mar. 1 Inventory 450 units…

A: inventory valuation is based on the flow of inventory.It can be calculated on the basis of LIFO…

Q: Calculate the goods available for sale for Atlantis Company, in units and in dollar amounts, given…

A: Goods available for sale in units = Beginning inventory + Total purchases Goods available for sale…

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: Date Units Purchased Units Sold Ending Units Beginning Units 300   300   0   1st Purchase 500…

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: Last in, first-out (LIFO): It is a cost flow assumption approach used in the measurement of the cost…

Q: Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the…

A: Cost of Goods Sold(COGS) is total which is incurred by business firm to produce the trading product…

Q: determine the cost of goods sold and compute the ending inventory as of Jan. 31 and make the journal…

A: LIFO inventory method is Last in first out which says that inventory purchased last will be sold…

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: given  that, Units Available for sale = 2100 ending inventory = 500 units sold = 1600

Q: Use the following inventory table to find the cost of goods sold using the first-in, first-out…

A: FIRST IN FIRST OUT METHOD :  UNDER THIS METHOD THE GOODS PURCHASED FIRST ARE SOLD FIRST AND THE…

Q: The following data applies to a particular item of merchandise: On hand at start of period 300…

A: Particulars Units Cost per unit Total value On hand at start of period 300 $5.10 $1530…

Q: a. Cost of goods sold on Jan. 27 b. Inventory on Jan. 31 %24

A: Under Lifo Method inventory that is last purchased is sold first  Cost of Goods sold should be…

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.