Concord uses the FIFO cost flow assumption. All purchases and sales are on account.         1. Assume Concord uses a perpetual system. Prepare all necessary journal entries.  2. Compute gross profit using the perpetual system. 3.Compute gross profit using the periodic system.

Q: Swifty Company sells one product. Presented below is information for January for Swifty Company.…

A: Given that, Swifty uses the FIFO cost flow assumption Swifty uses a periodic system. A physical…

Q: The following information is available for Zhang Company: Item Units Unit Total cost Beginning…

A: Solution...     Total costs of goods available for sale = $2,840  Total units available for sale =…

Q: Prepare general journal entries for the following transactions of Eva Inc.: Eva Inc. is a retail…

A: Journal entry: It is prepared to record the financial and non financial transaction of the business…

Q: June Corp. sells one product and uses perpetual inventory system. The beginning inventort consisted…

A: FIFO, first in first out is one of method which is used for inventory valuation under this method…

Q: Vaughn Company uses a periodic inventory system. For April, when the company sold 540 units, the…

A: Under periodic inventory system, the cost of goods sold is taken as the residual value after…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: Perpetual Inventory System: There is a  continual track of  inventory balances under perpetual…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: Inventory valuation is used to calculate the ending inventory. It is based on the flow of inventory…

Q: Cullumber Company sells one product. Presented below is information for January for Cullumber…

A: Periodic Inventory system - The inventory quantity is determined periodically by physical count…

Q: Shown below is the activity for one of the products of Random Creations: January 1 balance, 80 units…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: Given that: Sales units = 240 units

Q: Sunland Company sells one product and uses a perpetual inventory system. The beginning inventory…

A: LIFO is the Last in first out method of inventory which says that inventory purchased last will be…

Q: Shown below is activity for one of the products of Denver Office Equipment:       January 1…

A: Lets understand the basics. In FIFO basis company assumes that, goods comes first in the inventory…

Q: Crane Company sells one product. Presented below is information for January for Crane Company.…

A: Using periodic system, the cost of goods sold is not recorded regularly. It is estimated and…

Q: FIFO periodic inventory method

A: Under FIFO periodic inventory method, the inventories first entered into the store are issued or…

Q: The following data was obtained from the records of ABC Inc., for the current year. Sales  during…

A: A.FIFO Cost of goods sold 80*8=640 65*10=650 55*12=660 10*14=140  Total 210 units= 2090 Cost of…

Q: 3) Neophyte Co. sells one product. A record of transactions for the month of May was as follows: May…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: FIFO is the method of valuation of inventory in which the earliest inventory hold by the…

Q: Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the…

A: Determine the inventory available for sale:   Date Particulars Units Unit cost Total Cost April…

Q: A company using perpetual FIFO has the following data for August: Beginning inventory: 150 units…

A: Cost of goods sold for 80 units = 80 units x $11 = $880   Sales = 80 units x $25 = $2,000

Q: Bramble Company reports the following for the month of June. Assume a sale of 500 units occurred on…

A: FIFO states that the inventory purchased first would be sold first. Whereas, LIFO states that the…

Q: Perpetual: LIFO and Moving-Average Kelley Company began business on January 1, 20-1. Purchases and…

A: The Numerical has covered the concept of Valuing Ending Inventory Under  LIFO, Moving Average…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: LIFO is the last in first out inventory valuation method which says that inventory which is…

Q: BC Inc. is a wholesaler of office supplies. The activity for Product X during August is shown below:…

A: Value of ending inventory using FIFO method Under FIFO method, Value of ending inventory is…

Q: Tamarisk Company sells one product. Presented below is information for January for Tamarisk Company.…

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

Q: The following information is for Fair Trader Company for the month of May. Fair Trader uses a…

A: solution working note goods available for sale date particular unit rate amount…

Q: A company had the following purchases during its first year of operations: Purchases Sales January…

A: Introduction:- As per the FIFO method, First comes into inventory first goes out. which means first…

Q: Bramble Company sells one product. Presented below is information for January for Bramble Company.…

A: Date Units Sales per unit Total sales 4 89 $8 $712 13 126 $9 1134 27 103 $11 1133   318…

Q: Coronado Company sells one product. Presented below is information for January for Coronado Company.…

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: The following data is available for one of the products sold by Chan Company for the month of April:…

A: This question is related to inventory valuation, there are many methods of inventory valuation such…

Q: XYZ company prepares financial statements monthly and the company uses FIFO method under a perpetual…

A: Under perpetual inventory method, purchases of inventory should be debited with inventory.   Amount…

Q: Shown below is activity for one of the products of Denver Office Equipment:       January 1…

A: Cost of Goods Sold is the cost of producing the goods, and it consists of direct materials, direct…

Q: (Periodic versus Perpetual Entries) Fong Sai-Yuk Company sells one product. Presented below is…

A: a.

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: According to IFRS, Inventory cost valuation is done based on FIFO, LIFO or Average costing method.

Q: Date Transaction Units Čost August 1 P36.00 37.20 2,000 3,000 3,600 4,800 3,800 1,600 Inventory…

A: Under LIFO method of inventory valuation units which are purchased in last are sold firsts .  Ending…

Q: Sunland Company sells one product. Presented below is information for January for Sunland Company.…

A: a. Prepare necessary journal entries to record cost of goods sold:

Q: Kiwi Ltd. started April with 90 units in inventory costing $16 each. Kiwi Ltd., which uses a…

A: Introduction Inventory Valuation Method: Inventory valuation methods are used to determine the cost…

Q: June Corp. sells one product and uses a perpetual inventory system. The beginning inventory…

A: The Cost of goods sold is always calculated without the profit part that is at cost.

Q: Use the following information for the Exercises below. [The following information applies to the…

A: Specific Identification Method: The specific identification method is a technique for discovering…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: FIFO is the method of valuation of inventory, where it is assumed that the product first purchased…

Q: Use the following information for the Exercises below. [The following information applies to the…

A: Perpetual inventory valuation is an inventory management method that records when stock is sold or…

Q: Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk…

A: Introduction:- Calculation of cost of goods sold as follows:- Beginning inventory (100 units X $5…

Q: Bramble Company sells one product. Presented below is information for January for Bramble Company.…

A: In the periodic method, all inventory is physically counted at the end of the accounting period and…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Answer: Concept Perpetual inventory               Under perpetual inventory the inventory is…

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.