DeForest Company had the following transactions for the month. Sales for the month are $85 per unit.Number of UnitsCost per UnitTotalBeginning inventoryPurchased Apr. 30Purchased Aug. 15500$40$20,00027,00026,00024,50097,5006004565040Purchased Dec. 1070035Totals (goods available)Ending inventory2,450550In the table below, calculate the dollar value for the period for each of the following items using thelisted cost allocation methods and using periodic inventory updating.PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" with commas as needed(i.e. $12,345), except for the Weighted Average cost per unit, which will be rounded to two decimalplaces and include "$" (i.e. $12,345.67). Weighted average cost per unit =per unit.CostCost of GoodsAllocationCost of Goods Sold Ending InventorySalesGross MarginAvailableMethodFirst-in,First-out(FIFO)Last-in,First-out(LIFO)WeightedAverage(AVG)

Name: DeForest Company had the following transactions for the month. Sales
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Description: DeForest Company had the following transactions for the month. Sales for the month are $85 per unit.Number of UnitsCost per UnitTotalBeginning inventoryPurchased Apr. 30Purchased Aug. 15500$40$20,00027,00026,00024,50097,5006004565040Purchased Dec. 1

FIFO stands for "First In, First Out" and is a method of inventory valuation used in accounting.…

Business

Accounting

Weighted average cost per unit = per unit. Cost Cost of Goods Allocation Cost of Goods Sold Ending Inventory Sales Gross Margin Available Method First-in, First-out (FIFO) Last-in, First-out (LIFO) Weighted Average (AVG)

Weighted average cost per unit = per unit. Cost Cost of Goods Allocation Cost of Goods Sold Ending Inventory Sales Gross Margin Available Method First-in, First-out (FIFO) Last-in, First-out (LIFO) Weighted Average (AVG)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

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Question

DeForest Company had the following transactions for the month. Sales for the month are $85 per unit.
Number of Units
Cost per Unit
Total
Beginning inventory
Purchased Apr. 30
Purchased Aug. 15
500
$40
$20,000
27,000
26,000
24,500
97,500
600
45
650
40
Purchased Dec. 10
700
35
Totals (goods available)
Ending inventory
2,450
550
In the table below, calculate the dollar value for the period for each of the following items using the
listed cost allocation methods and using periodic inventory updating.
PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" with commas as needed
(i.e. $12,345), except for the Weighted Average cost per unit, which will be rounded to two decimal
places and include "$" (i.e. $12,345.67).

Weighted average cost per unit =
per unit.
Cost
Cost of Goods
Allocation
Cost of Goods Sold Ending Inventory
Sales
Gross Margin
Available
Method
First-in,
First-out
(FIFO)
Last-in,
First-out
(LIFO)
Weighted
Average
(AVG)

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