A company values its inventory using the first in, first out (FIFO) method. At 1 May 2002 the company had 700 engines in inventory, valued at $190 each. During the year ended 30 April 2003 the following transactions took place: 2002 1 July Purchased 500 engines at $220 each 1 November Sold 400 engines for $160,000 2003 1 February Purchased 300 engines at $230 each 15 April Sold 250 engines for $125,000 What is the value of the company’s closing inventory of engines at 30 April 2003?

Q: On January 1, 2012, Jackson Enterprises opened its doors. Jackson uses the first-in, first-out…

A: Please find the answer to the above question below:

Q: The following lots of a particular commodity were available for sale during the year Beginning…

A: Introduction: LIFO: LIFO stands for Last in First out which means last received inventory to be sold…

Q: During 2021, Claneverium Corporation transferred inventory from its home office to its Laguna branch…

A: Working:

Q: Johnson Corporation began the year with inventory of 10,000 units of its only product. The units…

A: Inventory is the revenue expenditure incurred on the purchase of products to resell by a company.…

Q: On January 1, 2022, Twice Inc. has an inventory account has a balance of P450,000. During the year,…

A: Cost of goods sold = Opening inventory + Purchases during the period - Closing inventory  Inventory…

Q: How much is the cost of goods sold using the specific identification method of inventory valuation?…

A: First, find the cost of ending inventory and then deduct it from the total cost to compute the cost…

Q: DDD Company took a physical inventory at the end of the year and determined that P1,900,000 of goods…

A: The inventory sold or purchased with FOB destination term, is included in the inventory of buyer…

Q: 74. During 2016, Jose Corporation transferred inventory from its home office to its Laguna Branch at…

A: Combined Statement:-When Parent Company combined the assets and liabilities of the subsidiary…

Q: The Famcor Sales Company employs the perpetual inventory basis in the accounting for new cars. On…

A: Following are the calculation of realized gross profit as of December 31, 2013:

Q: company values its inventory using the first in, first out (FIFO) method. At 1 May 20X2 the company…

A: FIFO method means first in first out , which means that closing stock will consist of latest…

Q: Urban Technology began the year with inventory of $320,000 and purchased $1,800,000 of goods during…

A: Cost of goods available for sale = Beginning inventory + Purchases

Q: A company values its inventory using the first in, first out (FIFO) method. At 1 May 20X2 the…

A: We have the following information: At 1 May 20X2 the company had 700 engines in inventory, valued…

Q: During the year, Wright Company sells 475 remote-control airplanes for $120 each. The company has…

A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…

Q: 1. Assume the company does not expect to replace the units of beginning inventory sold; it plans to…

A: LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the…

Q: The following lots of a particular commodity were available for sale during the year Beginning…

A: Using LIFO method, the units purchased at last are sold first and older inventory is left in the…

Q: Butter Company took a physical inventory at the end of the year and determined that $190,000 of…

A: FOB destination means Freight On board destination which implies that the seller is seller is the…

Q: Scotch company took a physical inventory at the end of the year and determined that P1,900,000 of…

A: ANSWER   Scotch company took a physical inventory at the end of the year and determined that…

Q: Beginning inventory 12 units at $47.00 First purchase 19 units at $55.00 Second purchase 52 units at…

A: Solution: amount of inventory at the end of the year using LIFO = 12 units from beginning inventory…

Q: During the year, Wright Company sells 435 remote-control airplanes for $120 each. The company has…

A: The question is based on the concept of Cost Accounting.

Q: Genuine Accessories Inc. is a wholesaler of automobile and truck accessories. Genuine Accessories…

A: Cash and accrual basis of accounting In cash basis of accounting only cash transactions are recorded…

Q: During the year, Wright Company sells 470 remote-control airplanes for $110 each. The company has…

A: Under FIFO method, inventory which is coming first in the store will be sold first. Ending inventory…

Q: During the past year, a plumbing supply house sold 504 faucets. Inventory records for the year are…

A: Introduction: Under FIFO method of inventory, inventory which comes first are sold first. Hence…

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: LIFO assumes that inventory purchased latest is sold first. In the closing inventory, 8,000 units…

Q: Wikki Inc. had the following transactions for the current year with respect to its inventory:

A: Unrealized holding gain is that results from holding on to an investment. It does not realize the…

Q: Sanchez Company was formed on January 1 of the current year and is preparing the annual financial…

A: Lower of cost or market value is the method of recording ending inventory in financial statement,…

Q: Mission Company provided the following information for the year 2021: Jan. 01 Inventory on hand 200…

A: Under FIFO Method, value of ending inventory is calculated on the assumption that units of inventory…

Q: During January of the current year, Metro Company which maintains a perpetual inventory system,…

A: FIFO: First-In First Out:- As per FIFO method, units purchased first are sold first.

Q: The following information applies to Alberta, Inc for 2020: Products acquired for resale, P400,000;…

A: The inventoriable cost include the cost incurred to acquire the product for resale.

Q: The following lots of a particular commodity were available for sale during the year Beginning…

A: The correct option is  A. $1,408.00

Q: Heiner Company began business on July 1, 2022 and made the following four inventory purchases in…

A: The First in first out method refers to the assumption that the goods which are received first are…

Q: On January 1, 2022, Bulldogs Inc. has an inventory account has a balance of P450,000. During the…

A: Working note: Computation of cost of goods sold: Cost of goods sold=Beginning…

Q: During January of the current year, FFF Company which maintains a perpetual inventory system,…

A: The FIFO stands for first in first out, where goods purchased first are to be sold first. The…

Q: Harden Company had goods available for sale at cost amounting to $120,000 and at retail amounting to…

A: The ending inventory as per retail ratio includes cost and profit both. So for calculating ending…

Q: During year 2, Dunn Company purchased $1,920,000 of inventory. The cost of goods sold for year 2 was…

A: Compute the beginning inventory: Cost of goods sold $1,800,000 Add: Ending inventory 360,000…

Q: The following lots of a particular commodity were available for sale during the year: Beginning…

A: Total units available for sale = 10+25+30+15 = 80 units Units sold = 25 units Ending inventory…

Q: On January 2020, Tony Corporation has the following inventory purchases: January 2 Bought 5,750…

A: Inventory costing methods are those methods which are used for valuation and costing of inventory.…

Q: A company values its inventory using the FIFO method. At 1 May 20X5 the company had 700 engines in…

A: We have the following information: 1 July: Purchased 500 engines at $220 each 1 November: Sold 400…

Q: On January 1, 2022, Bulldogs Inc. has an inventory account has a balance of P450,000. During the…

A: Cost of goods sold = Beginning inventory + purchases - ending inventory = P450000 + 2950000 - 925000…

Q: Boomerang Ltd. had 200 units in its inventory on 30 November valued at $800. In December, it made…

A: The FIFO method represents that the units purchased first would be sold first.

Q: Zimt AG started business in 2007 and uses the FIFO method. During 2007, it purchased 45,000 units of…

A: FIFO is the abbreviation for First In First Out. It is a method to value inventories. In this…

Q: During 2012, a company sells 200 units of inventory for $50 each. The company has the following…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: During the year, Wright Company sells 425 remote-control airplanes for $110 each. The company has…

A: Under LIFO method, the units purchased later are sold at first. The older units are left in the…

Q: As a result of a thorough physical inventory, Ulalam Company determined that it had inventory worth…

A: Solution:- Calculation of  the correct amount of inventory to be reported in Ulalam Company’s…

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: First-in-First-Out (FIFO): In First-in-First-Out method, the cost of initial purchased items are…

Q: The following lots of a particular commodity were available for sale during the year Beginning…

A: The amount of  inventory at the end of the year according to LIFO method is $1,203 Refer step 2 for…

Q: Vaughn Manufacturing took a physical inventory on December 31 and determined that goods costing…

A: A physical check of stock is a real tally of the considerable number of items that a business stock.…

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.