E2-7 FIFO COSTING Using first-in, first-out perpetual inventory costing and the following information, determine the cost of materials used and the cost of the July 31 inventory: July 1 Balance on hand, 960 yd of linen @ $3.65 each. 3 Issued 192 yd. 5 Received 480 yd @ $4.56 each. 6 Issued 120 yd. 10 Issued 96 yd. 11 Factory returned 18 yd, which were issued on the 10th, to the storeroom. 15 Received 576 yd @ $5.05 each. 20 Returned 336 yd to the vendor from the July 15 purchase. 26 Issued 672 yd. E2-8 LIFO costing -Using last-in, first-out perpetual inventory costing and the information presented in E2-7, compute the cost of materials used and the cost of the July 31 inventory

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: Akira Company had the following transactions for the month.   Number of Units Cost per Unit…

A: Particulars No. of Units Cost per unit Total Value Beginning Inventory 160 $10 $1600…

Q: Iron Hill began August with 46 units of iron inventory that cost $40 each. During August, the…

A: Sale value=38×$60+65×$70=$2,280+$$4,550=$6,830

Q: Required information Use the following information for the Quick Study below. (Algo) (5-7) [The…

A: Under weighted average cost method of Inventory valuation, Cost of goods available for sale by the…

Q: Iron Hill began August with 45 units of iron inventory that cost $24 each. During August, the…

A: Sale value=35×$63+65×$77=$2,205+$5,005=$7,210

Q: Sandhill Co. reports the following for the month of June. Date   Explanation   Units…

A: Compute weighted average cost per unit:Compute the weighted average average cost per unitDate…

Q: Bonita Company reports the following for the month of June. Units Unit Cost Total Cost June 1…

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

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: Bronze Company had the following transactions realting to inventory during January: Unit…

A: FIFO, or First In, First Out method is one of the commonly used methods of inventory valuation which…

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: 380 The units of Product Bvailable for sale during the ye wesllewe April 1 Inventory 62 umits IES…

A: Under FIFO method the oldest products in inventory have been sold first.   Under LIFO method the…

Q: 9. MNO Manufacturing Company which uses the periodic inventory system showed the following…

A: Date units purchased unit cost units issued 5/1 10 15 0 5/5 20 20 0         5/15 0 0 15…

Q: Flounder Corp. uses a periodic inventory system and reports the following for the month of June.…

A: Determine weighted-average cost per unit.

Q: Iron Hill began August with 62 units of iron inventory that cost $30 each. During August, the…

A: Last-in, first-out is the method of inventory valuation where the item that is purchased or…

Q: During the month of January, De Oro Company which uses a perpetual inventory system recorded the…

A: Under the average cost method, the ending inventory is multiplied by the average cost of inventory…

Q: Use the following information for the Quick Study below. (Algo) (5-7) [The following information…

A: FIFO is the method of inventory valuation in which the inventory that has been initially bought is…

Q: Required information M7-11 to 13 Calculating Cost of Goods Available for Sale, Cost of Goods Sold,…

A: FIFO METHOD:

Q: Akira Company had the following transactions for the month.   Number of Units Cost per Unit…

A: Numberof Units Costper Unit Total cost Beginning Inventory 160     $10     $1600 Purchased…

Q: 5. Screnity Books has the following transactions in August related to merchandise inventory. Aug. 1…

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

Q: The following information is to be used in costing inventory on August 31. August 1 Beginning…

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

Q: Monty Corp. reports the following for the month of June.         Units   Unit Cost   Total Cost…

A: GIVEN   Monty Corp. reports the following for the month of June.         Units   Unit Cost…

Q: Fire fax manufacturing company has the following information in relation to commodity D2 for July:…

A: Inventory is one of the most important current assets for the business and so its valuation. We need…

Q: Compute the cost of the ending inventory and the cost of goods sold under (1)FIFO and (2)LIFO.(2…

A:

Q: Perpetual: LIFO and Moving-Average The beginning inventory, purchases, and sales for Myrl Sign…

A: Perpetual inventory system: Under this inventory system, the records of inventory are continuously…

Q: P6-3B Smythe Company Inc. had a beginning inventory of 200 units of Product ERV at a cost of $6 per…

A: Under FIFO method, the inventory which is bought first is sold firstUnder LIFO method, the inventory…

Q: MNO Manufacturing Company which uses the periodic inventory system showed the following transactions…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: Lambeth Company experienced the following events in January: Date Events Units Unit Cost Total Cost…

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

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: The cost of materials used and the cost assigned to the August 31 inventory by each of these…

A: FIFO- Under first in first out method inventory that is brought at the earlier dates are sold/issued…

Q: Pronghorn Corp reports the following for the month of June. Date Explanation Units Unit Cost Total…

A: Following are the calculation of weighted average unit cost:

Q: Iron Hill began August with 45 units of iron inventory that cost $24 each. During August, the…

A: LIFO (Last in first Out) is method where goods that are newer are sold first.

Q: Cost of ending inventory Cost of materials issued

A: Moving average method: Under this method moving average cost is calculated based on the weighted…

Q: 2. Trini Company had the following transactions for the month. Number of Units Cost per Unit Total $…

A: Cost allocation:- Cost allocation is the process of identifying and allocating the total production…

Q: Required information M7-11 to 13 Calculating Cost of Goods Available for Sale, Cost of Goods Sold,…

A: FIFO METHOD:

Q: Pronghorn Corp reports the following for the month of June. Date Explanation Units Unit Cost Total…

A: Date Explanation Units Unit cost Total cost 1-Jun Inventory 117 $5 $585 12-Jun Purchases 336 $6…

Q: Akira Company had the following transactions for the month.   Number of Units Cost per Unit…

A: First-in, First Out (FIFO) Under the First in first out (FIFO) method of inventory valuation, Cost…

Q: The following information is available for Zhang Company: Item Units Beginning inventory p00 Unit…

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

Q: 6-14

A: 1) Under variable costing method, we need to consider only variable cost per unit while computing…

Q: Iron Hill began August with 45 units of iron inventory that cost $24 each. During August, the…

A: The inventory of a company can be valued on the basis of different methods such as FIFO, LIFO, and…

Q: Lane Company provided the following inventory card during February: Purchase Units used Balance…

A: SOLUTION- WEIGHTED AVERAGE METHOD-  IT IS INVENTORY COSTING METHOD THAT ASSIGN AVERAGE COSTS TO…

Q: Riverbed Corp reports the following for the month of June. Date Explanation Units…

A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

Q: P6-3B Smythe Company Inc. had a beginning inventory of 200 units of Product ERV at a cost of $6 per…

A: A company mainly deals by purchasing items adding value to it at selling them at higher prices. But…

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

A: Weighted Average cost method is a method of pricing of inventory. Under average cost method the…

Q: Perpetual: LIFO and Moving-Average The beginning inventory, purchases, and sales for Myrl Sign…

A: Unit cost for moving average method = Total cost of available units / Total available units

Q: Lemke Corp. uses a perpetual inventory system with a (moving) weighted average inventory costing…

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

Q: Hassan Company reports the following for the month of June.     Units Unit cost Total Cost June…

A: a)

Q: ENDING INVENTORY COSTS Sandy Chen owns a small specialty store, named Chen’s Chattel, whose year-end…

A: Ending inventory refers to the value of inventory lying with the entity at the end of accounting…

Q: The supplementary ledger account of material Z presented the following entries in June 200X: No Date…

A: Ending inventory is the goods that are left with the entity at the end of the period.

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.