During 2012, a company sells 200 units of inventory for $50 each. The company has the following inventory purchase transactions for 2012: Date Transaction Units Unit Cost Total Cost $1,950 3,800 2,960 Jan 1 $39 Beginning Inventory Purchase 50 May 5 Nov 3 100 38 Purchase 80 37 Actual sales by the company include its entire beginning inventory, 80 units of inventory from the May 5 purchase, and 70 units from the November 3 purchase. Required: Calculate cost of goods sold and ending inventory for 2012 assuming the company uses: a) FIFO (First in, First out) b) LIFO (Last in, First out) c) Average Cost d) Explain the impact of these different methods in the recognition of Cost of goods sold and Ending Inventory in the financial statement of the company.

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A: Gross profit is computed by deducting the amount of cost of goods sold from the revenue earned by…

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A: 1.

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A:

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A: Introduction: FIFO Inventory Method: FIFO stands for First-in First-Out. As the name suggests, this…

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A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

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A: under FIFO Method  the goods which bought first will be sold first  under LIFO method the goods…

Q: the following units of an item were available for sale during the year: Beginning inventory 25…

A: Solution-1                                               Fifo Mehod   Sno Receipt Issue Balance…

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A: For the purpose of inventory valuation, there are many methods that are used. These are first in…

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A: The cost of goods available for sale includes the sum of beginning inventory and goods purchased…

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

Q: John had 150 units in inventory costing $5,700 on December 1st, 2020. During the month of December,…

A: Weighted average unit price on Dec. 18, 2020 = (Cost of beginning inventory + Cost of Purchase) /…

Q: The following units of a particular item were available for sale during the calendar year: Jan. 1…

A: Calculate the cost of merchandise sold and ending inventory. (Weighted average method).

Q: The following are information about purchases and sales for main product of AMEER Inc. for year…

A: Weighted average cost = cost of all the units / number of units

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

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A: Inventory may be : Opening Inventory  Closing Inventory  Number of units sold = Number of units…

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

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A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

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A: Requirement 1: The cost of goods sold under LIFO:

Q: LIFO and FIFO. What is the differences? Examples

A: Computations under FIFO

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A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

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A: FIFO means first in first out which means that inventory which is recieved first , will be sold…

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A: Weighted average- Under the weighted average method, the cost is considered to be average at the…

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A: Under FIFO method, goods purchased first are to be sold first and newer goods are left in stock or…

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A: Inventory is the raw materials used in production and available for sale. The inventory includes raw…

Q: how much is the ending inventory using the weighted average method?

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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: Jailbird Company provided the following data about the inventory for the month of January: Units…

A: As per the moving average method, the value of ending inventory is determined by weighted average…

Q: Lee Ltd. has the following units and costs for the month of April. Beginning inventory, April 1,…

A: FIFO: FIFO stands for First-In, First-Out. As its name suggest, this method assumes that the oldest…

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Q: During the year, Trombley Incorporated has the following inventory transactions. Number Unit Date…

A: Inventory valuation refers to the process of determining the value of inventory available with the…

Q: Altira Corporation provides the following information related to its merchandise inventory during…

A: LIFO stands for Last In First Out which means units purchased in last would be sold first.

Q: Jailbird Company provided the following data about the inventory for the month of January: Units…

A: Under the moving average cost method, the cost of inventory calculates by dividing the cost of items…

Q: The Stake Technology Inc. company has the following purchases and sales during the year ended…

A: Perpetual inventory system is that inventory system under which all transactions related to purchase…

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.