Use the following information to answer Short Exercises S6-3 through S6-6. Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston bought 40 bicycles at $68 each. On October 31, Boston sold 34 bicycles for $100 each. Preparing a perpetual inventory record and journal entries—FIFO Requirements Prepare Boston Cycle’s perpetual inventory record assuming the company uses the FIFO inventory costing method. Journalize the October 16 purchase of merchandise inventory on the account and the October 31 sale of merchandise inventory on account.

Q: Requirea information [The following information applies to the questions displayed below.] Trey…

A: LIFO Method :— It is one of the methods of inventory valuation in which it is assumed that recent or…

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A: Cost accounting is one of the important branches of accounting. All types of costs and expenses are…

Q: Trey Monson starts a merchandising business on December 1 and enters into the following three…

A: LIFO Method :— It is one of the method of inventory valuation in which last purchases or recent…

Q: Trey Monson starts a merchandising business on December 1 and enters into the following three…

A: Weighted Average Method - This method is part of inventory valuation methods. Under this method…

Q: rey Monson starts a merchandising business on December 1 and enters into the following three…

A: Perpetual inventory system: Under this inventory system, the records of inventory are continuously…

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A: Inventory valuation refers to the methods used by the company to determine the value of its…

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

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Q: Rogers Products uses a periodic inventory system. The company's records show the beginning inventory…

A: FIFO means first in first out. In FIFO , cost of goods sold is valued at oldest price and closing…

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A: Introduction: FIFO: FIFO stands for First in First out. Which means first received inventory to be…

Q: Determine the costs assigned to ending inventory when costs are assigned based on the weighted…

A: Introduction:- Weighted average method is one of the inventory valuation method. which is used to…

Q: Bramble Department Store uses a perpetual inventory system. Data for product E2-D2 include the…

A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…

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A: Journal entries are part of the internal control process. Businesses may identify and stop mistakes…

Q: Iron Hill began August with 46 units of iron inventory that cost $40 each. During August, the…

A: Sale value=38×$60+65×$70=$2,280+$$4,550=$6,830

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A: In LIFO method inventory comes first are out first .Ending inventory consists 15 units from…

Q: If answered within 45mins,it would be helpful.thanks in advance Sales-Related Transactions Using…

A: Journal entries record the transactions of the business in its accounting books. Transactions having…

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A: Ending inventory= Total purchases - COGS

Q: 2) Orpa Company had a beginning inventory of 430 units with a total cost of $2,580. During the year…

A: Total units available for sale = Beginning units + Purchases  = 430+600+700+450+550 = 2730 units…

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A: Inventory Valuation is a method of calculating the value of stock at the end of an accounting…

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

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A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

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A: Inventory valuation refers to the process of assigning a monetary value to the inventory of a…

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

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A: SOLUTION. LIFO METHOD ASSUME THAT THE MOST RECENT PRODUCT ADDED THE COMPANY'S INVENTORY HAVE BEEN…

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A: Inventory is valued on the basis of different inventory valuation methods such as LIFO, FIFO, or…

Q: Required information [The following information applies to the questions displayed below.] Trey…

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

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A: Discount on Payment = Net payable x discount rate = ($1500 - $200)*2% = $26

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A: Under the LIFO method, the newest products in inventory have been sold first.

Q: The Boxwood Company sells blankets for $ 40.00 each. The following was taken from the inventory…

A: Number of units available for sale = 10 + 16 + 10 = 36 units Number of units sold = 3 + 5 + 2 = 10…

Q: The inventory data for an item for November are: Line Item Description Inventory Sold Purchased Sold…

A: Cost of goods sold is the amount of cost incurred on the making of the goods that are sold in the…

Q: [The following information applies to the questions displayed below.] Warnerwoods Company uses a…

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Q: Teal Mountain uses a periodic inventory system. In April, 600 units were sol Units Unit Cost Total…

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

Q: Trey Monson starts a merchandising business on December 1 and enters into the following three…

A: Solution Concept FIFO method means the method of inventory in which the goods purchased first is…

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A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Q: Required Information [The following Information applies to the questions displayed below.]…

A: The ending inventory can be valued using FIFO, LIFO, or weighted average. The last in first out…

Q: Where does the discount come from? On Sep 14.

A: Terms 2/n, n/30 implies the cash discount terms for a credit transaction. 2/10 represents a 2…

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.