The following three identical units of Item PX2T are purchased during April:   Item Beta   Units   Cost   April 2 Purchase   1   $244   April 15 Purchase   1   247   April 20 Purchase   1   250   Total     3   $741   Average cost per unit         $247 ($741 ÷ 3 units) Assume that one unit is sold on April 27 for $336. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method.

Q: (a) Calculate the cost of the ending inventory and the cost of goods sold for each cost flow…

A: Under the FIFO(First in First Out) method, the oldest products in inventory are sold first.Under the…

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

A: The weighted Average Cost (WAC) method of inventory valuation equips a weighted average to estimate…

Q: the activity for one of the products of Random Creations: ance, 80 units sse $4,00e 40 units $51 40…

A: Date Units  Rate Total 01-Jan 80  $   50.00  $      4,000 18-Jan 40  $   51.00  $      2,040…

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

A: Particulars No. of Units Cost per unit Total Value Beginning Inventory 160 $10 $1600…

Q: Balance/Transaction No. of units Beginning Inventory Sale Purchase Date Cost March 1 10 units $20…

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

Q: Addison, Inc. uses a perpetual inventory system. Below is information about one inventory item for…

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

Q: Bramble Company uses a periodic inventory system. For April, when the company sold 600 units, the…

A: It is an inventory valuation approach. The cost of goods sold and ending inventory are also…

Q: A company had the following purchases and sales during the month of November: Units Acquired at Cost…

A: LIFO stands for Last In First Out. Using LIFO perpetual inventory, the newer inventory is sold out…

Q: Lisa Company reports the following for the month of June. Date Explanation Units Unit Cost Total…

A: Perpetual FIFO:                     Goods Purchased Cost of Goods Sold Ending Inventory Date…

Q: Cullumber Company sells one product. Presented below is information for January for Cullumber…

A: Periodic Inventory system - The inventory quantity is determined periodically by physical count…

Q: The Hat Store had the following series of transactions for Year 2. Description 35 units @ $19.50 200…

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

Q: Consider the following data: RECEIVED ISSUED 1-Apr| 20 units @ P 5.00 each 5-Apr 10-Apr 60 units @ P…

A: Using moving average method, average cost per unit is calculated after every sale and purchase.

Q: Garrett Company has the following transactions during the months of April and May:   Date…

A: FIFO METHOD :— Under this method, first inputs is used for the output units or sales units.  Cost of…

Q: Assume Hadley Co has the following purchases of inventory during the first month of operations…

A: Under weighted average method of inventory valuation, weighted average cost per unit will be…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: Under Perpetual LIFO Method, value of ending inventory is calculated assuming that latest bought…

Q: Under the weighted average method, what amount should bo ronorted as inventory on December 31?

A: Date Receipts Issues Balances Qty Rate Amt Qty Rate Amt Qty Rate Amt…

Q: The units of an item available for sale during the year were as follows: Jan. 1   Inventory 5 units…

A: Ending inventory is amount of inventory in hand at the end of the period. It is reported under…

Q: Mena Company uses a perpetual inventory system. It entered into the following purchases and sales…

A: FIFO is the inventory valuation method in which inventories purchased at first will be sold first.…

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: Assume Huxley has the following purchases of inventory during the first month of operations…

A: FIFO means where the goods purchased first will be sold first and closing inventory will consist of…

Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…

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

Q: annoe Company uses a periodic inventory system and reports the following for the month of Jun Date…

A: Lets understand the basics.Ending inventory and cost of goods sold can be calculated by,(1) FIFO(2)…

Q: Mena Company uses a perpetual inventory system. It entered into the following purchases and sales…

A: Under FIFO method, older units are sold first and newer units are sold later.

Q: Three identical units of Item K113 are purchased during July, as shown below.   Item K113 Units…

A: LIFO or Last-In-First-Out is a method of inventory valuation where the inventory is valued at the…

Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…

A: Cost of goods available for sale formula: =(Cost of goods purchased during the period + cost of…

Q: Assume Ava Co. has the following purchases of inventory during the first month of operations Number…

A: Introduction:- As per LIFO method, records the most recently produced items as sold first. LIFO…

Q: Mena Company uses a perpetual inventory system. It entered into the following purchases and sales…

A: Gross profit = NET sales - cost of goods sold   WN-1 calculation of closing inventory units =…

Q: The following units of a particular item were availlable for sale during the calendar year: Jan. 1…

A: Last-in, first-out is the method of inventory valuation where the item that is purchased or…

Q: Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and…

A: Periodic inventory system is a system where cost of goods sold is not updated simultaneously. At…

Q: 1. If 10 units are sold on August 24th, what is the total Cost of Merchandise Sold for the month…

A: 1. Cost of goods sold under LIFO method Sale units cost per unit cost of good sold =Sale…

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: Trini Company had the folowing transactions for the month. Number Cost of Units per Unit Totat…

A: First in First out (FIFO) is one of the inventory valuation methods in which the earliest inventory…

Q: Assume Ava Co. has the following purchases of inventory during the first month of operations…

A: LIFO is last in first out inventory valuation method in which goods purchased at last in the…

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: ZARA uses a First-In-First-Out (FIFO) perpetual inventory system and has the following purchases and…

A: FIFO stands for First In and First Out. Using FIFO method, the goods that were purchased first are…

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

A: The question is related to Valuation of closing nventory under three different methods  Required…

Q: Number Total of Units Cost Beginning inventory 130 $1,300 Purchased Mar. 31 180 2,160 Purchased Oct.…

A: Gross margin is also regarded as gross profit which is defined as the sales revenue that the company…

Q: I want answer from option a, b and c

A: Explanation of Price-Earnings (P/E) Ratio:The price-earnings (P/E) ratio compares a company's stock…

Q: Ivanhoe Company uses a perpetual inventory system and reports the following for the month of June.…

A: FIFO stands for First-in-first-out. It refers to the method of valuing inventory in which goods…

Q: he following data are available for Sellco for the fiscal year ended on January 31, 2020:…

A: Calculation of COGS and ending inventory: FIFO COGS= (500*4)+(600*5)+(500*6) =2000+ 3000 +3000 =$…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: clsoing inventory = opening inventory + purchase - sales

Q: inning inventory 10 30 1-Apr Purchase 30 32 16-Jun Purchase 40 35 28-Nov Purchase 20 36 There…

A: Answer :FIFO Method : Date Purchase     Cost of good sold     Ending inventory       Unit Unit…

Q: Assume Ava Co has the following purchases of inventory during the first month of operations…

A: The calculation of Ending inventory is given below. You may kindly note the following All amounts…

Q: From the following, calculate the cost of ending inventory and cost of goods sold for the…

A: In the weighted average method of inventory valuation, ending inventory and cost of goods sold are…

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

A: Inventory is usually valued at its cost or net realizable value, whichever is lower. Cost includes…

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.