16-ABC Merchandise business follows perpetual inventory system.  The business had 200 units in inventory at 1st January 2019 valued at RO 20. On 10th January Purchase was made 300 units at RO 30 each. On 30th January Sales was made 400 units at RO 40 each. What will be the Closing stock at the end of January 2019 assuming that the business uses LIFO method?  a. OMR 2,000 b. OMR 11,000 c. OMR 16,000 d. OMR 3,000

Q: Brief Exercise 6-09 a-b At December 31, 2020, the following information was available for E. Hetzel…

A: Given that: Ending inventory = $40,000 Beginning Inventory = $56000 Cost of goods sold = $270,000

Q: company's inventory records report the following: Beginning balance August 1 August 5 August 12 24…

A: Calculation of value of inventory under FIFO method are as follows.

Q: 9-NIZWA ELECTRONICS is a Retail Merchandise trader. The business is selling all electronics items.…

A: Assumed that the business uses the FIFO method, Cost of goods sold at the end of May 31 = 20×60+5×50…

Q: Jan. 1 Inventory 3,800 units at $41 Apr. 19 Sale 2,600 units June 30 Purchase 4,600 units at $45…

A: solution: Under LIFO method of inventory costing, goods purchased in last is considered as sold…

Q: 3) Abe's Printing Supply Company uses a perpetual inventory system. The company had the following…

A: Perpetual inventory system is the one which records the inventory item transactions on a regular…

Q: 22-Golden Furniture in Muscat follows periodic inventory method. The business sold Merchandise 100…

A: The goods returns can be provided full allowance or returns or some part of allowance.

Q: he J. Love Company uses a periodic inventory accounting system and values its inventory by using the…

A: Net realizable value (NRV) is net value of assets that can be recoverable at the time of sale of…

Q: 2. Williams Company had the following balances and transactions during 2020: Beginning Inventory…

A: FIFO inventory method says that inventory which is purchased first in the business will be sold…

Q: Beginning inventory, purchases, and sales for Item Copper are as follows: Mar. 1 Inventory 450 units…

A: Inventory valuation method includes: FIFO Method LIFO Method Weighted average Method   FIFO Method…

Q: a companys inventory records report the following august 1 begining balancw 16 units at 6.00 5th…

A: First in first out: It refers to the method of inventory valuation that calculates the balance of…

Q: During 2021, a company sells 20 units of inventory. The c Number of Units Co 12 Un Date Jan. 1…

A: Ans. Ending inventory = Opening inventory + purchases - sales    Cost of goods sold = No. of units…

Q: 24. Muscat Company uses the periodic inventory system to account for inventories. Information…

A: Inventory management is the process of tracking and managing the inflow and outflow of inventory in…

Q: 6. The Denver Company uses the gross profit method to estimate its inventory in interim financial…

A: Ending inventory remains unsold at the end of accounting period of the organisation.

Q: 1. Prepare an income statement for the year ending December 31, 2019. Assume that twenty thousand…

A:

Q: (CLO-21] ABC Company was formen January 1, 2022. The following information is available from ABC's…

A: FIFO means the first in first out which means that goods purchased first will be sold first.…

Q: ABC LLC’s accounting records shows the following for the year ending on 31st December 2017:Purchase…

A: The correct answer is Option (b)  RO 288,000.

Q: Golden Furniture in Muscat follows periodic inventory method. The business Purchased Merchandise 100…

A: This question deals with the concept of discount benefits given for early payment. There are many…

Q: 5) The following data pertain to Stainless Steel Enterprises for the year ended December 31, 2020:…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: (b) Assume Displays Incorporated $65,000 beginning balance of inventory comes from the base year…

A: Given in the question: Inventory at beginning of the year = $16,000 Cost index at the beginning of…

Q: Ether trading unit given the following information for the year ended March 31, 2020 for one of its…

A: Journal proper contains details of transactions which are not there in the book of accounts as they…

Q: 1. Perpetual: Assume that Marvel uses a perpetual FIFO inven- tory system. What is the dollar value…

A: First in first out: It refers to the method of inventory valuation that calculates the balance of…

Q: Apricot Company sells a variety of items to its customers. At December 31, the balance of Apricot’s…

A: Inventory should be valued at cost or net realizable value (NRV) whichever is lower on December 31.

Q: How much cash is required to eliminate the current balance in accounts payable?

A: The answer for the question how much cash is required to eliminate the current balance in accounts…

Q: 32-Assuming that  a Retail Merchandise business purchased 500 numbers of HP three in one printer for…

A: Credit terms in the business shows if amount is being paid in a defined time, then some percentage…

Q: Përpêtual Inventory Usihg FIFO The following units of a particular item were available for sale…

A: Solution: Under FIFO method of inventory valuation, inventory purchased first is considered as sold…

Q: Question 2 Skyline Inc. has the following transactions during May, 2020. • May 10 Purchased goods…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: 5-Royal traders LLC accounting records shows the following for the year ending on 31 December 2019,…

A: Net cost of purchased means the purchase less all kind of return and allowance and should include…

Q: Question three The following are the details regarding the receipts and issues of material X in…

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

Q: Problem 1A physical count of inventory on December 31, 2019 revealed that Grapes Company had…

A: The goods shipped as FOB shipping point, becomes the part of inventory of buyer as the goods are…

Q: Week 9 Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of…

A: First in First out (FIFO) is one of the inventory valuation methods in which the earliest inventory…

Q: 8. Alta Ski Company's inventory records contained the following information regarding its latest ski…

A:

Q: TRANSACTIONS DURING January 2019 Date Particulars Units Cost (OMR) Amount (OMR) 3000 3000 Beginning…

A:

Q: 17. Natomi Company uses the moving average cost method of valuing inventories. During August 2022,…

A: Under the moving average cost method, the cost per unit is calculated after every purchase, rather…

Q: BigB furn mart has the opening inventory of RO 34,600, purchases of RO 52,800, purchase discount of…

A: Net purchases=Purchases-Purchase discount-Purchase return and allowance=RO 52,800-RO 2,400-RO…

Q: Williams Co. uses a periodic inventory system. The following are inventory transactions for the…

A: The cost per unit under weighted average method is calculated as total cost of goods sold divided by…

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.