The purchases by Nizwa Book Store are given below. If the shop sells 70 books, find the value of ending inventory using average cost method. Purchases No of books purchased Cost/Unit January 1 30 3 March 3 50 2 April 7 20 4   a. 100 RO b. 189 RO c. 81 RO d. 90 RO

Q: The inventory data for an item for November are: Nov. 1 Inventory 25 units at $23 4 Sold 9 units 10…

A: The perpetual inventory system is the system where the company counts the inventory on regular…

Q: San Lorenzo General Store uses a periodic inventory system and the retail inventory method to…

A: The average cost attributed to the commodities or products that are still in inventory at the…

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

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

Q: The Boxwood Company sells blankets for $ 37.00 each. The following was taken from the inventory…

A: As per the last in first out (LIFO) method, the goods acquired last are sold first. In other words,…

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.