Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method perpetually at the time of each sale, as if it uses perpetual inventory system. Assume Oahu Kiki's records show the following for the month of January. The company sold 280 units between January 16 and 23. Date Units Unit Cost Total Cost Beginning Inventory Purchase January 1 January 15 $ 90 100 $19,800 48,000 24,000 220 480 Purchase January 24 200 120 Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods. FIFO LIFO Cost of Ending Inventory Cost of Goods Sold

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A: Under LIFO, the newer goods are sold first, and older are left in the business.

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Ending Inventory = Total Cost of goods - Cost of goods sold

Q: Metlock Company uses a periodic inventory system. For April, when the company sold 650 units, the…

A: LIFO: Last-In First Out:- As per LIFO method, units purchased last are sold first.  Hence, April 23…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: As per last-in, first-out method units sold from inventory are the units that have been purchased…

Q: Vaughn Company uses a periodic inventory system. For April, when the company sold 540 units, the…

A: Under periodic inventory system, the cost of goods sold is taken as the residual value after…

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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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A: Let's understand some basics Ending Inventory is the goods which are purchased but no yet sold at…

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

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Introduction: LIFO: LIFO stands for Last in First out which means last received inventory to be sold…

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: The sale was made on Jan 14, So the average cost will be calculated from the purchases of Jan 1 and…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: Given that: Sales units = 240 units

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

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

A: Given: A company reports the following beginning inventory and two purchases for the month of…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…

Q: Fermat Company uses a perpetual inventory system and had 300 units of inventory on hand at January 1…

A:

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Hence, COGS is $111,000. It is obtained by addition of sales made on March 14 and August 31 Here,…

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

A: Solution: Cost assigned to ending inventory under LIFO is as under using below table:

Q: Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the…

A: Determine the inventory available for sale:   Date Particulars Units Unit cost Total Cost April…

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A: Ending Inventory = Total Cost of goods - Cost of goods sold

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A: Inventory cost valuation has different kinds of following methods: a) FIFO: Under this method, it is…

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

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

Q: Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the…

A: Total cost of goods available for sale = $11,850 Total units available for sale = 1,000 units Ending…

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A: FIFO Cost of ending inventory  (210 x 7) + (40 x6) = 1710 Cost of goods sold = (100 x 5) + (325 x6)…

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A: INTRODUCTION Periodic inventory system is the method of recording inventory. Under Periodic system…

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A: There are 3 types of methods for inventory valuation: a. FIFO b. LIFO c. Weighted average   FIFO: In…

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

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

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Meaning of First In First Out :-  First In, First Out, also known as FIFO, is a method for valuation…

Q: Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the…

A: First in first out is a method of accounting of inventory in which the stock purchased first is…

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A: In first in first out (FIFO) method, the inventory purchased first is sold first. The inventory…

Q: On November 1, Lacy Company began business with the purchase of 250 units of inventory for $21,625.…

A:

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: FIFO, LIFO and weighted average are the three most common methods which are used for the recording…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting perlod but…

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

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Introduction: LIFO: LIFO stands for Last in First Out which means Last received inventory to be sold…

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A: Inventory is very sensitive thing for the firm because it effects all production level and its…

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A: The periodic method of inventory is a different method that says inventory should be calculated at…

Q: Aircard Corporation tracks the number of units purchased and sold throughout each accounting period…

A: Beginning inventory=Units×Per units=2000×$25=$50,000

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A: According to IFRS, Inventory cost valuation is done based on FIFO, LIFO or Average costing method.

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

Q: Using a perpetual inventory system. This company's beginning inventory of a product and its…

A: Calculate the cost of goods sold under LIFO method:

Q: June Corp. sells one product and uses a perpetual inventory system. The beginning inventory…

A: The Cost of goods sold is always calculated without the profit part that is at cost.

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A: Cost of goods refers to the expenses which are related to production or manufacturing the goods to…

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

A: Moving average cost   Inventory Balance Total cost Average cost 09-Jan 490 $…

Q: Gladstone Limited tracks the number of units purchased and sold throughout each accounting perlod…

A: Req-1                   Priodic FIFO:                     Purchase & Beginning Inventory…

Q: Orion Iron Corporation tracks the number of units purchased and sold throughout each year but…

A: 1)         Calculation the number and cost of goods available for sale Particulars Date Units…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Answer: Concept Perpetual inventory               Under perpetual inventory the inventory is…

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.