This information (in millions) is available for the Automotive and Other Operations Divisions of General Motors Corporation for a recent year. General Motors uses the LIFO inventory method. Instructions (a) Calculate the inventory turnover ratio and days in inventory. (b) Calculate the current ratio based on inventory as reported using LIFO.

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A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Solution :   Units Unit Cost Total Cost Inventory, December 31, prior year 1940 $…

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A: Step 1: FIFO or First-in, First-out method assumes that the goods first purchased are first sold.…

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

Q: Given that selling, distribution and administrative costs for the quarter were $22,960 and $74,240…

A: Perpetual Inventory System – Under the Perpetual inventory system on every sales transaction cost of…

Q: Compute inventory turnover and days' sales in inventory for the three months ended March 31, 2022.…

A: Average inventory =( Opening inventory + Closing inventory )/2                              =…

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A: The last in the first out method refers to the inventory valuation method. This method follows the…

Q: Assume that Swann Company uses a periodic inventory system and has these account balances:…

A:

Q: Al Falah Co. uses a periodic inventory system. Its records show the following for the month of May,…

A: There are 3 types of methods for inventory valuation: a. FIFO b. LIFO c. Weighted average   FIFO: In…

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Q: The accounting records of Sheridan Company show the following data. Beginning inventory 2,710…

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A: 1. Cost of goods sold/Average inventory=Inventory turnover62,200/12,100=5.142. Number of days in the…

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A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

Q: Records from FDNACCT Co. revealed the following data: Inventory, January 1 = P340,000 Physical…

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A: Weighted average cost per unit= Total purchase and begcost/ Total purchased and beg unit

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

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Q: Unit Units Cost Inventory, December 31, prior year 1,850 $ 3 For the current year: Purchase, March…

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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.