From the following figures (A) calculate the closing stock in trade that would be shown using (i)FIFO (ii)LIFO (iii)AVCO methods on a PERIODIC inventory basis. (B)Then prepare an income statement using (i)FIFO (ii)LIFO (iii)AVCO methods. Bought                                                                   Sold January              120 at $16each                  June         125 at $22 each April                    80 at $18 each              November   210 at $25 each October              150 at $19 each Format you should follow to show the closing stock  for the FIFO,LIFO and AVCO:                                                              Method   Purchases Cost of good sold  Ending Inventory Date Units Unit cost Total cost Units Unit cost Totat cost  Units Unit cost Total Cost

Q: Company A conducts the following transaction for the financial year ending Dec. 2011 for a…

A: LIFO (Last in first out) method of inventory valuation shows the inventory which is purchased at…

Q: When preparing its quarterly financial statements, Pace Co. uses the gross margin method to estimate…

A: Cost of goods sold = Sales - Gross profit = $1,218,000 - ($1,218,000*45%) = $1,218,000 - $548,100 =…

Q: At December 31, 2022 the following information (in thousands) was available for Swifty Inc: ending…

A: Formula: Inventory turnover = Cost of goods sold / Average inventory.

Q: What will be the inventory turnover ratio based on the following given information?   Net sales are…

A: Solution: Inventory turnover ratio is calculated to know how much time in a year company is able to…

Q: On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method.…

A: Dollar value LIFO method: This method is different model for the last-in first layering model. Under…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Inventory turnover ratio is a ratio which determines how efficiently and effectively the inventory…

Q: of beginning inventory at a cost of $3.00. During the year, the company made the following…

A: Solution..   Total units available for sale  = Beginning inventory + Purchases  = 500 + 1,200 + 800…

Q: At December 31, 2022. the following information (in thousands) was available for Swifty Inc: ending…

A: Formula: Inventory turnover = Cost of goods sold / Average inventory

Q: XYZ Co uses the periodic inventory system to account for inventories. Its beginning inventory  is…

A:

Q: Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber Company…

A: Trial balance is the list of accounts having balances at the end of a…

Q: Megadeth Sdn Bhd has the following information regarding the purchase and issue of inventory…

A: The First in first out method is based on that the goods which are received first are issued first.…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Days sales in inventory = 365/(cost of goods sold/Average inventory)  Average inventory = (Opening…

Q: Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber Company…

A: An income statement is the one that is prepared to determine the company's profitability from…

Q: Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and…

A: Inventory - Cost of Inventory will include Purchase Cost, Freight Cost incurred, Import Duties, and…

Q: The following selected information is presented for Bramble Limited for the year ended February 28,…

A: The income statement is prepared to find the net income or loss incurred during the period.

Q: Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim…

A: The inventory turnover ratio is the ratio that tells about the turnover of the inventory. It shows…

Q: (FIFO

A: a) Closing stock as per  FIFO methods    b) Cost of goods sold as per FIFO method.     c) Profit or…

Q: Below is selected financial information for Swingline Inc. 2020 2019 2018 2017 Ending Inventory Cost…

A: The question is based on the concept of ratios analysis. As per the Bartleby guidelines we are…

Q: From the following information you are required to find closing inventory as per CPP method, when…

A: Inventory as on 31st December 2020 = OMR 180,000 Average Price = 125 Price as on 31st December 2020…

Q: The following transactions have been recorded in the stock card of M & EM for its material, Dark…

A: September month  Date  Receipts Issued Balance   Quantity Rate Amount Quantity Rate Amount…

Q: Bought Sold January 24 at £10 each June 30 for £16 each April 16 at £12.50 each November 34 for £18…

A: Purchases: 24 at €10 in the month of January 16 at €12.50 in the month of April 30 at €13 in the…

Q: On January 1, Veltron International has inventory worth $599,900 at cost. At the end of the year,…

A: Inventory turnover: Inventory turnover is the quantitative tool that tells the number of times a…

Q: The following information is available for cullumber company for three recent fiscal years.…

A: Solution:- Calculation of Inventory turnover ratio as follows under:-

Q: From the following figures (A) calculate the closing stock in trade that would be shown using…

A: A.   1. Compute closing stock in trade using FIFO Method as shown below:     Calculation formulas:…

Q: The following additional information was made available before the year-end closing: 1. Inventory as…

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: The company wants to ascertain the closing stock using the three possible methods (FIFO, LIFO and…

A: Date Qty Cost per unit Total January 12 $40 $480 April 12 $36 432 October 21 $40 840 Total…

Q: A company reports the following: Cost of goods sold $480,340 Average inventory 68,620 Determine (a)…

A:

Q: Carla Vista Co's balance sheet at December 31, 2021, is presented below. Carla Vista Co. Balance…

A:

Q: Inventory Analysis The following data were extracted from the income statement of Keever Inc.:…

A: Ratio analysis is a method of measuring the organization's financial position with different kinds…

Q: The following is the inventory details of Muscat gases during the month of January 2021. Date…

A: As per the LIFO method, it assumes the latest/current inventory is sold first. In this method, the…

Q: Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim…

A:

Q: Compute the Inventory turnover ratio from the following information: Opening Stock =P50,000 Closing…

A: Inventory turnover ratio = Cost of raw material consumed / Average stock of raw material Average…

Q: Arppel Company uses a periodic inventory system and closes its accounts annually on 31 December.…

A: Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory Gross Profit = Net Sales -…

Q: Using a periodic FIFO inventory system, determine the cost of the closing inventory and the cost of…

A: FIFO method is first come first basis. The units purchased first are sold first  No of units sold =…

Q: Using a periodic FIFO inventory system, determine the cost of the closing inventory and the cost of…

A: Ans. As per FIFO method, the unit of goods which is purchased first is sold first. Hence, the name…

Q: Young Traders is owned by Yvonne Young. Young Traders is not a VAT vendor and uses the perpetual…

A: A statement of change in equity is a statement that helps to know the company’s share capital,…

Q: Records from FDNACCT Co. revealed the following data: Inventory, January 1= P130,000 Physical count,…

A: Under periodic inventory system, the cost of goods sold is not recorded with every sales…

Q: Cedus bags had the following data in respect of material X for the year ended 31st March 2021…

A: Inventory turnover ratio: =Raw material consumed / Average raw materials in stock Average…

Q: The comparative inventory balances for December 31, end of the year, for a company are provided…

A: Horizontal analysis is prepared to calculate the variance from previous year by showing…

Q: Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber Company…

A: What is meant by a Balance Sheet? It is the statement of financial position comprised of Assets,…

Q: Records from FDNACCT Co. revealed the following data: Inventory, January 1 = P340,000 Physical…

A: Using periodic inventory system, the inventory and cost of goods sold is valued at end of accounting…

Q: Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber Company…

A: Journal entry is the process of recording the business transactions in the books of accounts for the…

Q: Which of the following statement about the closing inventory for last month is correct

A: LIFO and FIFO both are the methods which are used by the company to determine the value of the…

Q: a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in…

A:

Q: Study the information provided below and calculate the expected value of closing inventory as at 31…

A: The cost of goods sold includes the total cost of goods that are sold during the period. Cost of…

Q: The following data were extracted from the income statement of Keever Inc.:Current YearPrevious…

A: Inventory turnover:   Inventory turnover ratio is a measure of liquidity, which evaluate how…

Q: The Product inventory balance of 62,754 on December 31, 2010 is based on the following information:…

A: 2011 Dec 31 Ending Product Inventory valued at FIFO = $85,000 Dec 31 Index Value for $ Value LIFO =…

Q: From the following figures (A) calculate the closing stock in trade that would be shown using…

A: Solution A) FIFO Date Particulars Unit Unit cost Total Cost January Bought 120 16 1,920 April…

Q: Young Traders is owned by Yvonne Young. Young Traders is not a VAT vendor and uses the perpetual…

A: Income statement: The income statement shows the amount of profit generated during the specific…

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.