Date Purchases Sales Balance Quantity Cost Quantity Cost Quantity Cost $72 Nov 1 65 Nov 3 120 $60 65 $72 120 $60 Nov 14 65 $72 20 $60 100 $60 100
Q: Sheffield has the following inventory data: July 1 Beginning inventory 32 units at $6.40 Purchases…
A: There are various methods of Inventory valuation one of them is LIFO. Last In First Out method…
Q: Marigold Company has the following inventory information. July 1 Beginning Inventory 30 units at $80…
A: Ending units = 30 + 70 - 45 + 40 - 30 = 65 units Cost per unit on July 5 = [(30 x $80) + (70 x…
Q: Cost of goods Sold
A: Jan 1 400 $7.00 $2800 Feb 15 1000 $7.50 $7500 June 30 1400 $8.00 $11200 Nov 25 1200…
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A: There is two type of inventory system follow by the organizations which are:- (1) Periodic inventory…
Q: The following units of a particular item were available for sale during the calendar year: Jan. 1…
A: First-in-First-Out (FIFO): In the First-in-First-Out method, the first purchased items are sold…
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Q: On 1st May, the Opening Inventory balance of a product is 200 units @ 10 per unit. Using the…
A: Under FIFO method goods that are brought at earlier dates are sold first. Cost of goods sold include…
Q: The units of an item available for sale during the year were as follows: Jan. 1 Inventory 11…
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Q: Anderson Company had the following information for the year ending December 31: Units Unit Cost…
A: LIFO stands for Last In First Out is the method of inventory valuation. It assumes that the most…
Q: On 1st May, the Opening Inventory balance of a product is 200 units @ 10 per unit. Using the…
A: Inventory means the stock of goods in hand . Goods means the thing in which the business deals and…
Q: The units of an item available for sale during the year were as follows: Jan. Inventory 1,800 units…
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Q: You have the following information for Larkspur Inc. for the month ended October 31, 2022. Larkspur…
A: Weighted Average cost = (63*23) + (117*25) + (104*26) + (67*28) / (63 + 117 + 104 + 67) Weighted…
Q: A company using the periodic inventory system has inventory costing $188 on hand at the beginning of…
A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory
Q: Sage Hill Inc. uses a perpetual inventory system reports the following for the month of June. Date…
A: FIFO - It is a method of inventory valuation in which goods received first are sent out first for…
Q: The inventory data for an item for November are: Nov. 1 20 units at $19 Inventory Sold 4 10 units 10…
A: Introduction: The price of the goods sold by the wholesaler or retailer is referred to as the cost…
Q: . A record of transactions for the month of September was as follows: Purchases Sales May 1…
A: FIFO is first in first out inventory method in which inventory which is purchased first will be sold…
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A: The inventory valuation method is used to evaluate the closing inventory and cost of goods sold…
Q: Periodic Inventory-FIFO Carla Company uses the perpetual inventory system. The following information…
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A: Under FIFO method the inventory that is being issued will be used from the stock that was purchased…
Q: Reed Company had the following information for the year ending December 31: Units Unit Cost…
A: LIFO means last in first out Which means that cost of goods sold will consist of lastest purchased…
Q: Determine the cost of goods sold for the transaction on October 25 using the perpetual inventory…
A: Correct answer is – b.$137 Compute total units and total units sold for the period as shown below:
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A: Calculate ending inventory : Sales unit = 50+125 = 175 Total Units available for sale = 100+200 =…
Q: The units of an item available for sale during the year were as follows: Jan. 1 Inventory 1,800…
A: “Hey, since there are two questions posted, we will answer first question(EX 7-13). If you want any…
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A: Under FIFO method the goods which bought first will be sold first, irrespective of subsequent…
Q: A record of transactions for the month of May was as follows: Purchases Sales May 1 (balance)…
A: "Last-In, First-Out" accounts for LIFO. That is a cost flow assumption approach used in the…
Q: Addison, Inc. uses a perpetual inventory system. The following is information about one inventory…
A: The last-in, first-out (LIFO) is an inventory valuation method in which it is assumed that the…
Q: The units of an item available for sale during the year were as follows: Jan. 1 Inventory 1,000…
A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…
Q: The following units of a particular item were availlable for sale during the calendar year: Jan. 1…
A: Last-in, first-out is the method of inventory valuation where the item that is purchased or…
Q: Company M uses the perpetual inventory system and valuates inventory using the weighted average…
A: Perpetual Moving Weighted average Beginning Inventory & Purchases Cost of…
Q: Study the following data. Transactions for the month of June were: Purchases Sales June 1 (balance)…
A: The inventory valuation is based on different methods such as FIFO, LIFO, Weighted average, or…
Q: Overton Company uses a perpetual inventory system for its single product. Its beginning inventory,…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Blue Limited uses a perpetual inventory system. The inventory records show the following data for…
A: FIFO is the method of inventory valuation whereby the goods that are initially bought are to be sold…
Q: Sheffield Co.uses a periodic inventory system. Its records show the following for the month of May,…
A: FIFO (First -In - First -Out) Method: Under this method,materials received first are issued first.…
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A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…
Q: the following information for Coronado Industries for the month ended October 31, 2022. Coronado…
A: Periodic inventory system: It is inventory system which involves the physical counts of goods at a…
Q: Beginning inventory, purchases, and sales for Item MMM8 are as follows: November 1 Inventory 104 15…
A: LIFO: LIFO stands for Last-In, First-Out. As its name suggest, this method assumes that the most…
Q: Calculate the cost of goods sold for May and the ending inventory at May 31 using the average cost…
A: Periodic inventory system: A periodic inventory system is a system of measuring inventory which is…
Q: Practice AA Company uses a periodic inventory system. At the end of the annual accounting period the…
A: The inventory can be valued using various methods as FIFO, LIFO and weighted average method. FIFO…
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A: As per FIFO Method units are sold on First in First out basis which means units purchased or already…
Q: a. Novak Inc. uses a perpetual inventory system. Its records show the following for the month of…
A: Here in this question we are required to calculation COGS and ending inventory under FIFO basis.…
Q: The cost of the ending inventory is:
A: Ending inventory cost is $1,210
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A: The Numerical has covred the concept of Inventory Valuation Under FIFO, LIFO, Average Methode In the…
Q: XYZ Company uses the periodic inventory system to account for inventories. Information related to…
A: We are using periodic inventory valuation which means inventory is reconciled and calculations made…
Q: Anderson Company had the following information for the year ending December 31: Units Unit Cost…
A: Perpetual inventory system: Under this inventory system, the records of inventory are continuously…
Q: Blossom Company uses the perpetual inventory system and had the following purchases and sales during…
A: The different methods to valuate inventory are LIFO, FIFO and weighted average method.
Q: Mika Corporation uses FIFO method to calculate the value of Inventory on hand on March 31 and cost…
A: First In, First Out (FIFO) is part of an accounting method where assets which are acquired first are…
The company uses the FIFO cost method for
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- The cost of the inventory on January 31, 2019, under the FIFO method is: a. 400 b. 2,700 c. 3,100 d. 3,200The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000(Appendix 8.1) Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows: Berry uses the periodic inventory method and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Next Level Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?
- Inventory Write-Down The inventory records of Frost Company for the years 2019 and 2020 reveal the cost and market of the January 1, 2019, inventory to be 125,000. On December 31, 2019, the cost of inventory was 130,000, while the market value was only 128,000. The December 31, 2020, market value of inventory was 140,000, and the cost was only 135,000. Frost uses a perpetual inventory system. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the journal entries at the end of 2019 and 2020 to record the lower of cost or net realizable value under the: a. allowance method b. direct method 2. Show the presentation of cost of goods sold and inventory of Frosts income statement and balance sheet for 2019 and 2020 under the: a. allowance method (assume the cost of goods sold prior to applying the lower of cost or net realizable value rule was 595,000 and 605,000 for 2019 and 2020, respectively) b. direct methodInventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows: Berry uses a perpetual inventory system and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Next Level Explain any differences in inventory valuation and income between the two methods.(Appendix 8.1) Inventory Write-Down The following are the inventories for the years 2019, 2020, and 2021 for Parry Company: Required: 1. Assume the inventory that existed at the end of each year was sold in the subsequent year. Prepare journal entries to record the lower of cost or net realizable value for each of the following alternatives: a. allowance method, periodic inventory system b. direct method, periodic inventory system 2. Next Level Refer to your answer for P8-2. How does the use of the periodic inventory system affect the write-down of inventory to the lower of cost or net realizable value?
- Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was shipped FOB destination, and the second for 4,000 was shipped FOB shipping point. Neither purchase had been received nor paid for on December 31, 2019. Required: Which of these purchases, if either, does Gravais include in inventory on December 31, 2019? What is the cost?Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Websters beginning inventory consisted of the following: During 2019, Webster had the following purchases and sales: Required: 1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to 4 decimal places. 2. Compute the LIFO cost of the ending inventory assuming Webster uses three inventory pools. Round cost indexes to 4 decimal places.(Appendix 8.1) Inventory Write-Down Frost Companys inventory records tor the years 2019 and 2020 reveal the cost and market of the January 1, 2019, inventory to be 125,000. On December 31, 2019, the cost of inventory was 130,000, while the market value was only 128,000. The December 31, 2020, market value of inventory was 140,000, and the cost was only 135,000. Frost uses a periodic inventory system. Purchases for 2019 were 100,000 and for 2020 were 110,000. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the journal entries at the end of 2019 and 2020 to record the lower of cost or net realizable value under the (a) allowance method and (b) direct method. 2. Prepare the cost of goods sold section of the income statement and show how the company would record the inventory on its balance sheet for 2019 and 2020 under the (a) allowance method and (b) direct method. 3. Next Level Refer to your answer for P8-3. How does the use of a periodic inventory system versus a perpetual inventory system affect the valuation of inventory and the amount reported as income?
- Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.( Appendices 6A and 6B) Inventory Costing Methods Edwards Company began operations in February 2019. Edwards accounting records provide the following data for the remainder of 2019 for one of the items the company sells: Â Edwards uses a periodic inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. Prepare the journal entries to record these transactions assuming Edwards chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 6. CONCEPTUAL CONNECTION Refer to Problem 6-67B and compare your results. What are the differences? Be sure to explain why the differences occurred.