The board of directors of Ichiro Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available.   Sales 21,000 units @ $50 Inventory, January 1  6,000 units @  20 Purchases  6,000 units @  22   10,000 units @  25    7,000 units @  30 Inventory, December 31  8,000 units @   ? Operating expenses $200,000 Instructions Prepare a condensed income statement for the year on both bases for comparative purposes.

Q: NAPA Wine Company is a retailer which sells vintage wines.  The company has established a policy of…

A: Given, Ordering inventory every 30 days = therefore, No. of orders in a year = 12    Total costs:…

Q: The department had a beginning inventory of 5,500 units of product, and it started 94,500 units…

A: The equivalent units are calculated on the basis of percentage of work completed during the period.

Q: Laker Company reported the following January purchases and sales data for its only product. Date…

A: LIFO is the Last in First out inventory method in which inventories purchased at last will be sold…

Q: Georgio Corporation has the following data as of December 31, 2021. Product C Product D Units…

A: Inventory  refers to all the goods  and material  sold by the market to earn a profit.

Q: Use the following information for Problems 32 and 33.Tristan, Inc., uses the LIFO cost-flow…

A: Cost of goods sold (LIFO) = 8000 units purchased for $40 per unit + 1500 units from beginning…

Q: In an effort to improve its competitive position, Oregon Co. recently introduced a new inventory…

A: An inventory control system is a technology that company uses to track goods supply chain. The…

Q: Universal Enterprise sells a product that cost $450 per unit and has a monthly demand of 5,000…

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

Q: Metro Computer Company had the following balances and transactions during 2014. Beginning inventory…

A: As per LIFO method, the ending inventory would consist of items from the first purchases as the…

Q: Suppose a divison of Florida Instruments Incorporated that sells computer microchips has these…

A: As per our guidelines we are supposed to answer one question in case of multiple questions under a…

Q: The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations.…

A: Ending Inventory Valuation using FIFO, LIFO and Weighted Average Method. FIFO Method: In this…

Q: Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000.…

A: a) Working note:

Q: Midwest Charm, Inc. specializes in selling scented farm equipment. The company has established a…

A: EOQ=2×Annual demand×Ordering costCarrying cost=2×660×$2,52535%×$15,000=25 units

Q: You have just been appointed as financial manager of Slow-Moving-Stock Limited. One of your main…

A: Inventory Turn Over ratio :— The inventory turnover ratio formula is equal to the cost of goods sold…

Q: SUPERIOR Company had 20,000 units of bottles on hand at January 1, costing P35 each. Purchases of…

A: FIFO stands for First in and first out. It means that units purchased at first are to be sold first.…

Q: The management of Savage, Inc. has engaged you to assist in the preparation of year-end (December…

A: Consignment Sales: It is an arrangement in which the Seller i.e. the Consignor transfers the goods…

Q: For numbers 6 and 7: Bruno Company provided the following data: Cost Retail Beginning inventory…

A: The conventional retail inventories technique is focused on the cost-retail price connection of a…

Q: Millington Materials is a leading supplier of building equipment, building products, materials, and…

A: 1. Journal entry to record changes in accounting principle…

Q: odrick Company is a merchandiser that reported the following information based on 1,000 units sold:…

A: Contribution Format Income Statement  Sales Revenue   $300,000 Less Variable Expenses:…

Q: Portis, Business requirements $8,000,000 in monthly sales, $5,600,000 in variable expenses, and…

A: It's crucial to understand how to distinguish between fixed and variable expenses when…

Q: Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs…

A: FIFO method:- In first in first out(FIFO) method company value the inventory on the assumption that,…

Q: The following data are for the Lite Corporation, which sells just one product:      Units Unit Cost…

A: First in, First out: In FIFO method the units that have purchased first, are released the first to…

Q: Use the following information for Problems 32 and 33.Tristan, Inc., uses the LIFO cost-flow…

A: Total goods available for sale = Beginning inventory + Purchases = 2,000 units + 8,000 units =…

Q: The management of Bartleby Graduate Co. has engaged you to assist in the preparation of year-end…

A: Bartleby Graduate Co's November inventory count = 145,730 Units Company uses "passing of legal…

Q: On March 1, a company purchased 10 footballs for $5 each.  On March 11, the company purchased an…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: A new firm, ABC, purchased 20,000 units of product X at PI0 per unit on January 5. It sold 15,000…

A: The ending inventory is calculated as difference between units available for sale and units sold.

Q: LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly…

A: Conventional Retail method refers to the estimation of lower of average cost or market by…

Q: In an effort to improve its competitive position, Oregon Co. recently introduced a new inventory…

A: Particulars Percentage of Sales Before New System Percentage of Sales After New System Sales…

Q: A firm that sells a single product had a beginning inventory of 7,000 units with a total cost of…

A: As per LIFO method goods that comes in last are sold first, so the ending inventory is valued at the…

Q: Requirements: How much are the ending inventory and cost of sales,respectively, under the average…

A: First in, first out:First is, first out is the method of inventory management and inventory…

Q: Prepare income statements under variable and absorption costing for the year ended December 31,…

A: Requirement 1:   Prepare an income statement under variable costing.

Q: In its first month of operation, Vaughn Manufacturing purchased 320 units of inventory for $8, then…

A: FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the…

Q: In its first month of operation, Vaughn Manufacturing purchased 320 units of inventory for $ 8, then…

A:

Q: I'm having issues with the problem attached.   Thank you

A: Compute the weighted average rate of purchase.

Q: The following data about Maxwell Company is given for the month of August. August 1 Inventory 800…

A: Weighted Average Cost (WAC) refers to the method of inventory valuation which uses a weighted…

Q: The home office ships merchandise to the branch at 25 percent above cost. If the balance before…

A: Particulars   Amount Inter-company inventory profit before closing   66,000  Less: Inter-company…

Q: The following data are for the Lite Corporation, which sells just one product:      Units Unit Cost…

A: FIFO method: The FIFO strategy works under the presumption that the first item of stock acquired, is…

Q: Presented below is information related to Kingbird, Inc.     Cost   Retail Beginning inventory…

A: Working Note: Cost to retail ratio = Cost of goods available for sale at Cost / Cost of goods…

Q: The management of Mark Brothers Company has engaged you to assist in the preparation of year-end…

A:

Q: In its first year of business, Miss Take, the bookkeeper, erroneously recorded $10,000 of product…

A: Period costs are not manufacturing costs and are fully expensed in the period which they are…

Q: Alta Ski Company’s inventory records contained the following information regarding its latest ski…

A: Solution: Introduction:   Inventory means goods are available for sale and raw materials used in the…

Q: Lewis Incorporated and Clark Enterprises report the following amounts for the year.       Lewis…

A: Cost of goods sold means the cost incurred on the goods which have been sold out. This figure can be…

Q: The following information for Quadrado Corporation relates to the three-month period ending…

A: Formula: Gross profit = Sales - cost of goods sold

Q: ventory, February 1, 20X0            P70,800                   P  98,500 Markdo

A: FIFO-: FIFO is used for “First-In, First-Out”. It is a procedure utilized for cost flow hypothesis…

Q: Lewis     Clark   Inventory (beginning) $ 14,000   $

A: Lewis     Clark   Inventory (beginning) $ 14,000   $ 40,000   Inventory (ending)   8,000…

Q: Jack Jones, the materials manager at Precision Enterprises,is beginning to look for ways to reduce…

A: Weekly of Supply can be calculated by below formula: [Raw materials + work in process + finished…

Q: Millington Materials is a leading supplier of building equipment, building products, materials, and…

A: Inventory (additional amount due to the new method: $14 million + 6 million) = $20 million Deferred…

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.