Top Corp uses LIFO accounting for inventory. Top begins the first quarter of 2020 with 800 units with a cost $60 each. During the first quarter of 2020, Top purchases 300 units at $70 each and sells 400 units at $130 each.   At March 31, 2018, replacement cost for inventory is $90 a unit. Top expects to replace  all 400 units that it sold by end of 2020. Using the integral method, what is the amount of Cost of Goods Sold recorded by Top for the quarter ended March 31,2020        a. $24,000   b. $28,000   c. $21,000   d. $30,000   e. $52,000

Q: Drago Company has a fiscal year end on December 31. The company has only one product in inventory,…

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

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A: The LIFO method is an inventory management technique that sells the most recently produced items…

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

A:

Q: The management of Swifty Inc. is reevaluating the appropriateness of using its present inventory…

A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…

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A: It is the stock that is left unsold at the end of the year. The inventory plays an important role in…

Q: Sales for 2021 (6,000 units @ $74) $444,000 Additional Information: a. The company's effective…

A: Average Cost Method The average cost approach divides the overall cost of goods bought or produced…

Q: Home Stop sells two product categories, furniture and accessories. Information pertaining to its…

A: The lower of cost or market (LCM) rule is applied to record a loss due to a decrease in the value of…

Q: The GAP purchased inventories totalling 10392 for the fiscal year ended Feb 2, 2019. I need to use a…

A: Cost of goods sold: It is the total cost of units which were sold. This cost includes all the…

Q: Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since…

A: SOLUTION WORKING NOTES   COMPUTATION OF EFFECT NET INCOME AFTER CHANGE- AVERAGE COST PER UNIT =…

Q: At May 1, 2020, Bonita Company had beginning inventory consisting of 170 units with a unit cost of…

A: Lets understand the basics. There are various methods are followed for calculating inventory balance…

Q: Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since…

A: There are two methods of verification of materials. They are periodic inventory system and perpetual…

Q: The inventory of Royal Decking consisted of five products. Information about the December 31, 2021,…

A: The question is related to Inventory Valuation. The details are given regarding the same. The…

Q: Almaden Hardware Store sells two product categories, tools and paint products. Information…

A: Inventory is a ledger that represents the value of inventory purchased by the entity. It is reported…

Q: Baldor Company reports inventory at cost of $72,000 and retail of $156,000 on January 1, 2020.…

A: Retail Method: This is a method used to determine the relationship between the cost price and the…

Q: Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: Businesses that employ the LIFO Inventory Costing Method sell their old inventory stock through the…

Q: hases:     6,700 units @ $53.00 $ 355,100   6,700 units @ $57.00 381,900 737,000 Cost of goods…

A: Date Account title Dr.  Cr. 2024 Retained earning a/c Dr. ($26,800*75%) $20,100     Deferred tax…

Q: A company began 2024 with 16,000 units of inventory on hand. The cost of each unit was $6.00. During…

A: The inventory valuation method includes:FIFO methodLIFO methodWeighted average cost methodFIFO…

Q: On December 31, 2024, the inventory of Bramble Company amounts to $880,000. During 2025, the company…

A: LIFO is the method of determining the ending balance of inventory where the cost of inventory is…

Q: A company began 2024 with 27,000 units of inventory on hand. The cost of each unit was $5.00. During…

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

Q: On December 31, 2016, the inventory of Powhattan Company amounts to $800,000. During 2017, the…

A: Compute the inventory value at December 31, 2017, under the dollar-value LIFO method:

Q: Morgenstern Ltd. has the following units and costs for the month of April. Beginning inventory,…

A: FIFO means first in first out which means that inventory which is recieved first , will be sold…

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A: Answer:- Inventory refers to the stock that is held by the company for resale purposes or the goods…

Q: Net sales (thousands of $) COGS (thousands of $) Merchandise inventories (thousands of $) Annual…

A: Net sales= $8750743 COGS= $6196185 Merchandise Inventories= $2202275 Annual Inventory holding cost…

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.