Shirley, Inc. had the following information regarding 2016 inventories:     Units Price Amount January 1 2016 Inventory 1,000 $6.00 $    6,000 March 8, 2016 purchase 2,000 $7.00     14,000 August 17, 2016 purchase 3,000 $8.00     24,000           Total 6,000   $44,000   During 2016, Shirley sold 2,000 units for $10.00 each.  Shirley adopted the LIFO method with a periodic inventory system.  Determine cost of ending inventory.

Q: The Delta company uses a periodic inventory system. The beginning balance of inventory and purchases…

A: Last-in-First-out (LIFO) method is an inventory valuation method under which the goods that were…

Q: At the beginning of 2016, a company adopts the dollar-value LIFO inventory method for its one…

A: Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units.…

Q: Gage’s accounting records included the following information: Inventory, 01-01-15…

A: Freight Out is a transportation expense incurred to move the good out of the manufacturers factory…

Q: Johnson Corporation began 2016 with inventory of 10,000 units of its only product. The units cost $8…

A: 1.

Q: DownTown Corp. uses a Periodic LIFO method to account for 100% of its inventory. its most recent…

A: FIFO Inventory Method:- This is a method of inventory valuation where inventory which comes first…

Q: The Company had the following Inventory transactions during the month of May 2017. Calculate the…

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

Q: Suppose Holt Renfrew, the specialty retailer, had these records for ladies' evening gowns during…

A: Average method of inventory is one of method used to determine the inventory value under this method…

Q: Amber Corporation has provided the following information of its operating activities for 2015:…

A: Amber's income statement for the year ended December 31, 2015 Particulars   Amount…

Q: Computing Cost of Goods Sold and Ending Inventory: Bartov Corporation reports the following…

A: First -in, first- out (FIFO), Last- in, first- out (LIFO) and average cost method are some of the…

Q: Richard Company was formed on December 1, 2016. The following information is availble from Richard's…

A: Periodic inventory system: Under this inventory system, the records of inventory are only updated at…

Q: Stellar Corporation began operations on December 1, 2016. The only inventory transaction in 2016 was…

A: Prepare a schedule to determine the total units available for sale and cost of goods available for…

Q: Decker Company has five products in its inventory. Information about the December 31, 2016,…

A: LCM (Lower of Cost or Market) approach: It is an approach that values the inventory at historical…

Q: Wildhorse Company was formed in 2016 and maintains its books and records on calendar-year basis. The…

A: Inventory refers to the goods held by the business either for selling or for further production so…

Q: The Lady in Red Corp. reported the following information for the month of September 2015: Date…

A: LIFO method is the abbreviation for last in first out, which means that the goods arrived at last…

Q: ltira Corporation uses a periodic inventory system. The following information related to merchandise…

A:

Q: Blossom Company uses a periodic inventory system. Details for the inventory account for the month of…

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

Q: uly 1               150 units              $5.20                 $  780 July 10             200…

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

Q: Particulars Beginning inventory Date Units Unit Cost/Price January 1 50 Tk. 10 March 1 Purchase 30…

A: DATE PARTICULARS UNITS Unit cost per price Total cost Jan 1 Beginning inventory 50 10 500 March…

Q: Bartov Corporation reports the following beginning inventory and purchases for 2017Beginning…

A: Determine cost of goods sold and ending inventory under FIFO.

Q: Following are the account balances from connery company’s statement of comprehensive income:…

A: Cost of goods available for sale means goods available in beginning inventory plus all purchases…

Q: The Delta company uses a periodic inventory system. The beginning balance of inventory and purchases…

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

Q: The Delta company uses a periodic inventory system. The beginning balance of inventory and purchases…

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

Q: Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception…

A: 1.

Q: Swifty Corporation began operations on December 1, 2016. The only inventory transaction in 2016 was…

A: How the average cost will be calculated? Average cost= Total Cost of Goods soldNo of units available…

Q: Determine ending inventory and cost of goods sold for 2016. 2. Assuming that operating expenses…

A: Compute the cost of ending inventory.

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: First-in-First-Out (FIFO): In First-in-First-Out method, the cost of initial purchased items are…

Q: Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2016, was $500,000…

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Parker Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items.…

A: Formula: Net Realizable value per unit = Estimated selling price - Estimated selling expense…

Q: Kumar Inc. uses LIFO inventory costing. At January 1, 2017, inventory was $214,000 at both cost and…

A: Inventory: Inventory refers to the raw materials, work in progress, and finished goods that are held…

Q: The following is a record of Larkspur Company’s transactions for Boston Teapots for the month of May…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Penn Company uses a periodic inventory system. At the end of the annual accounting period, December…

A: Inventory valuation Inventory valuation is a method of accounting that companies use to determine…

Q: Sunland Company was formed in 2016 and maintains its books and records on calendar-year basis. The…

A: Schedule for computing ending inventory on Feb 28, 2017 is as under:

Q: The Kwok Company’s inventory balance on December 31, 2016, was $165,000 (based on a 12/31/16…

A: Definition:

Q: A lquist Company uses the retail method to estimate its ending inventory. Selected information about…

A: 1. Compute estimated ending inventory and cost of goods sold using the conventional retail method as…

Q: Precision Company uses the perpetual inventory method. It has provided the following inventory…

A: The perpetual inventory system records and updates the inventory after each and every transaction.…

Q: Flounder Corp. had 2,000 units of part T on hand April 1, 2017, costing $ 8 each. During April,…

A: Date Units Unit cost Total April 1 2000 $8 $16000 4 3000 8.25 24750 10 4000 8.40 33600 19…

Q: Raynolde Company uses a periodic inventory system. At the end of 2016, the following information is…

A: Periodic system is one of the techniques of reporting inventory in the books. In this, the records…

Q: Jelly Bros. Tools, Inc. had the following layers in its LIFO tablesaw inventory at january 1, 2018.…

A: Calculate the current operating margin.

Q: The Reuschel Company began 2016 with inventory of 10,000 units at a cost of $7 per unit. During…

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

Q: On Dec. 31, 2015, Kanye's Hardware has the ff info: COST RETAIL Inventory, Beginning USD 650,000 USD…

A: The cost of goods sold is the difference between the cost of goods available for sale and ending…

Q: Gage’s accounting records included the following information: Inventory, 01-01-15…

A: Estimated loss from any shoplifted items:

Q: Samuelson and Messenger (S&M) began 2016 with 200 units of its one product. These units were…

A: (1)Calculation of ending inventory and cost of goods sold under FIFO method: Resulting excel sheet…

Q: Causwell Company began 2016 with 10,000 units of inventory on hand. The cost of each unit was $5.00.…

A: 1.

Q: Wildhorse Company was formed in 2016 and maintains its books and records on calendar-year basis. The…

A: Under FIFO method, goods purchased first should be sold first. Therefore, COGS under the FIFO method…

Q: Sheila’s company uses retail inventory method to estimate their ending inventory. For year 2015,…

A: Cost Retail Beginning Inventory USD 76, 000 USD 138, 000 Purchases USD 290, 000…

Q: Swifty Corporation began operations on December 1, 2016. The only inventory transaction in 2016 was…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS  Average Cost pas unit = Total Cost / total unit…

Q: Computing cost of goods sold and ending inventory under FIFI, LIFO and average cost. Assume that…

A: Hence, COGS and ending inventory for 2017 under FIFO are $175,000 and $225,000 respectively.

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.