Gerald D. Englehart Company uses a perpetual inventory system. The company has the same inventory, purchases, and sales data for the month of March as shown earlier:   Inventory: March 1      200 units @ $4.00        $   800 Purchases: March 10    500 units @ $4.50          2,250 March 20   400 units @ $4.75          1,900 March 30   300 units @ $5.00          1,500 Sales:         March 15   500 units       March 25   400 units   The physical inventory count on March 31 shows 500 units on hand.   Instructions   Under a perpetual inventory system, determine the cost of inventory on hand at March 31 and the cost of goods sold for March under (a) FIFO, (b) LIFO, and (c) average-cost.

Q: Cost Selling   Retail Selling Price Inventory of merchandise, June 30 Rs300,000 Rs500,000…

A: a) Cost of Goods Sold It refers to the cost incurred by a company that is directly related to…

Q: Bullwinkle company has the following inventory, purchases, and sales data for the month of August.…

A:

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A: Perpetual inventory system helps to track inventory after each sale or purchase made hence, it is…

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Q: The firm maintains a perpetual inventory system. Determine the cost of merchandise sold for each…

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A: Under FIFO, the management assumed that the product being sold is from the units purchased first and…

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A: First in first out means that goods sold will be from the oldest purchase and last in first out…

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A: The goods that ar available for sale, the cost of these goods is said to be cost of goods available…

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A: Solution: Under FIFO method of inventory, inventory purchased first is considered as sold first.…

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A: First in, First out (FIFO) method -  As per FIFO, goods purchased first will be sold first which…

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A: Introduction: LIFO: LIFO stands for last in first out which is method of inventory accounting where…

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A: First-in, first-out is the method of inventory valuation where goods which are purchased firstly,…

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A: Net sales = Sales revenue - Sales return = $1061800-72100 = $989,700

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

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A:

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A: Under FIFO method, the goods purchased first are sold first and newer goods are sold later.

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A: The question is based on the concept of the cost accounting

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A: Perpetual Inventory System is the method of valuation of inventory on a daily basis rather than at…

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A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…

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

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A: The different methods to valuate inventory are LIFO, FIFO and weighted average method.

Q: Mark Price Company uses the gross profit method to estimate inventory for monthly reporting…

A: Given,   Inventory, May 1 $ 160,000 Purchases (gross) 640,000 Freight-in 30,000 Sales…

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.