The Reuschel Company began 2016 with inventory of 10,000 units at a cost of $7 per unit. During 2016, 50,000 units were purchased for $8.50 each. Sales for the year totaled 54,000 units leaving 6,000 units on hand at the end of 2016. Reuschel uses a periodic inventory system and the LIFO inventory cost method. Required: 1. Calculate cost of goods sold for 2016. 2. From a financial reporting perspective, what problem is created by the use of LIFO in this situation? Describe the disclosure required to report the effects of this problem.

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A: FIFO Method assumes that goods purchased first are sold first which means closing stock will…

Q: Shirley, Inc. had the following information regarding 2016 inventories:     Units Price Amount…

A: Ending inventory with LIFO method is determined by the ending inventory units valued at the oldest…

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A: Inventory Beg bal  $   20,000 JE 3  $20,000 JE4  $   30,000     End bal  $   30,000…

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A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…

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A: In FIFO method , The inventory bought first are sold first. In LIFO method , the inventory bought…

Q: Adams Corporation uses a periodic inventory system and the retail inventory method to estimate…

A:

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A: Under LIFO Inventory company used the latest inventory to sell at the first and beginning inventory…

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A: Under the FIFO method, the oldest products in inventory are sold first.Under the LIFO method, the…

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A: The weighted average cost of inventory is a method of determining the cost of goods sold (COGS) and…

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A: Periodic inventory system: Under this inventory system, the records of inventory are only updated at…

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A: Bank Reconciliation Statement - It is the statement showing a summary of banking and business…

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A: The cost of goods available for sale includes the sum of beginning inventory and goods purchased…

Q: WHAT IS THE WEIGHTED-AVERAGE COST PER UNIT BASE OFF THE CHART??   You are provided with the…

A: Weighted average unit cost of inventory means on an average what will be unit cost of inventory.…

Q: Chou Sales Corporation uses the periodic inventory system. On January 1, 2018, Chou had 1,000 units…

A: The LIFO strategy works under the presumption that the last item of stock acquired, is the item that…

Q: Coulter Company uses the LIFO inventory method under theperiodic inventory system. The following…

A: In this numerical has covered the concept of LIFO under Periodic Inventory System for valuing the…

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A: Ending inventory refers to the value of goods that are still in stock and held by a company at the…

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A: Formula: Average price per unit = Total purchases value / number of units purchased. Division of…

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A: Weighted average cost is one the techniques of valuing inventory and preparing the store ledgers. In…

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A: ‘’Since you have asked multiple question, we will solve the first question for you. If you want any…

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A: FIFO Method :— It is one of the method of inventory valuation in which it is assumed that old…

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

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A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: The following information relates to Pronghorn Back Falls Ltd. 's inventory transactions during the…

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Q: Muscat Company uses the periodic inventory system to account for inventories. Information related to…

A: Under FIFO periodic system of accounting for Inventory, Inventory purchased first is issued first…

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Q: Aiello Inc. had the following inventory in fiscal 2016. The company uses the LIFO method of…

A: LIFO (Last-In, First-Out) is an inventory accounting method where the most recently acquired goods…

Q: Calculate the cost of goods sold dollar value for A66 Company for the month, considering the…

A: Last in, first out (LIFO) is a method of inventory accounting in which the most recently made things…

Q: The Delta company uses a periodic inventory system. The beginning balance of inventory and purchases…

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Q: Calculate the cost of goods sold dollar value for A67 Company for the month, considering the…

A: Weighted average means when average is calculate after taking quantity as weight.

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Q: ?

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A: First-in-First-Out (FIFO):   In First-in-First-Out method, the costs of the initially purchased…

Q: At May 1, 2016, Sheridan Company had beginning inventory consisting of 190 units with a unit cost of…

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Q: 1. The Pattasar Electric Appliances company uses perpetual inventory system and first-in, first-out…

A: Calculation table

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Q: Calculate the cost of goods sold dollar value for A66 Company for the month, considering the…

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A: Inventory valuation Inventory valuation is a method of accounting that companies use to determine…

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.