The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10 1st purchase 500 5.20 2nd purchase 700 5.30 3rd purchase 600 5.50 Number of units available for sale 2,100 On hand at end of period 500 Number of units sold during period 1,600 Of the 1,600 units sold during the period, 300 were from the beginning inventory; 500 from the first purchase; 600 from the second purchase; and 200 from the last purchase. Using the first-in, first-out costing method, the cost of goods sold would be a. $8,570. Ob. $2,750. Oc. $8,390. d. $8,410.

Q: The following data regarding purchases and sales of a commodity were taken from the related…

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

Q: Beginning inventory, purchases, and sales for Item Foxtrot are as follows:     March 1…

A: Inventory: It is the goods and material a business hold to sell. There are two methods for recording…

Q: Beginning inventory, purchases, and sales for Item Copper are as follows: Mar. 1 Inventory 450 units…

A: * I am not getting the same answer as it is given in the column but i have used the correct…

Q: A company just began business and made the following four inventory purchases in June: $ 990 1,344…

A: Under average cost method using periodic inventory system, value of ending inventory and cost of…

Q: Beginning inventory, purchases, and sales for Item ER27 are as follows: August 1   Inventory 65…

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

Q: A. Beginning inventory, purchases, and sales for Item Copper are as follows:  Mar. 1  Inventory…

A: Step1:   Meaning: Perpeual Inventory system: We Continually update the inventory and cost of goods…

Q: The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units…

A: Calculation of ending inventory cost FIFO= (60*200)+(15*180) = $ 14700

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: In first in first out , it is assumed that the goods which are purchased first will be sold first.…

Q: A company just starting the business made the following four inventory purchases in June: Unit Unit…

A: Average method of inventory accounting focuses on the average price of the goods available for sales…

Q: Beginning inventory, purchases, and sales for Item Delta are as follows: July 1 Inventory 50 units…

A: Perpetual Inventory System refers to the inventory system that maintains the detailed records of…

Q: Whispering has the following inventory data: Nov. 1 Inventory 28 units@$5.50 each Purchase 110 units…

A: Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory…

Q: Beginning inventory, purchases, and sales for Item XJ-56 are as follows: May 1      Beginning…

A: Inventory is one of the important current asset of the business, which includes inventory of raw…

Q: Use the following information from Marvel Company for themonth of July. July 1 Beginning inventory…

A: Specific identification method: Specific identification method identifies the cost of each item in…

Q: Beginning inventory, purchases, and sales for 30xT are as follows:   May 1 Inventory 300 units…

A: Working:

Q: On the basis of the following data, what is the estimated cost of the merchandise inventory on May…

A: Cost of merchandise inventory at end = Inventory at the end as retail price * Rate of cost to…

Q: Beginning inventory, purchases, and sales for Item Gidget are as follows: Sept. 1 80 units at $175…

A: Calculate the cost of merchandise sold and ending inventory of item G as on september 30:In…

Q: Determine the ending inventory cost by (a) FIFO (b) LIFO (c) Average Cost.   a. b. c.

A: First-in-First-Out (FIFO):   In First-in-First-Out method, the costs of the initially purchased…

Q: Beginning inventory, purchases, and sales for Item Copper are as follows: Mar. 1 Inventory 450 units…

A: Inventory valuation method includes: FIFO Method LIFO Method Weighted average Method   FIFO Method…

Q: Inventory system and the gross method. 1 Sold merchandise for $6,400, with credit terms n/30;…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: he following data applies to a particular item of merchandise: On hand at start of period 300…

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

Q: Beginning inventory, purchases, and sales for Item ProX2 are as follows:     Jan 1 Inventory…

A: Perpetual inventory system is one of an inventory system through which the inventory is manage by…

Q: The following pertains to the cost of H’s only inventory item: Inventory on hand, January 1…

A: Prepare perpetual inventory under LIFO method:

Q: The following data applies to a particular item of merchandise: On hand at start of period 300…

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

Q: Use the information below for questions 7-11 20 units at $19 70 units at $20 10 units at $22 $380…

A: Calculation of Ending inventory using Weighted Average Method Value of ending inventory = Number of…

Q: Beginning inventory, purchases, and sales for Item Copper are as follows: Mar. 1 Inventory 450 units…

A: inventory valuation is based on the flow of inventory.It can be calculated on the basis of LIFO…

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: cost of goods sold = cost of goods available for sale - the cost of ending inventory.

Q: Use the information below for questions 7-11 $ 380 July 1 Beginning inventory Purchases 20 units at…

A: Inventory Valuation can be done by the First In First Out (FIFO) method and the Last In First…

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: Date Units Purchased Units Sold Ending Units Beginning Units 300   300   0   1st Purchase 500…

Q: Beginning inventory, purchases, and sales for Item Copper are as follows: Mar. 1 Inventory 450 units…

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

Q: Beginning inventory, purchases, and sales for Item Copper are as follows: Mar  1       inventory…

A: Perpetual inventory system: It is a method of inventory management that records real time…

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: Formula: Total sales = Sales units x selling price per unit Multiplying total sales units with the…

Q: A company just starting business made the following four inventory purchases in June: Unit Unit Cost…

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

Q: Beginning inventory, purchases, and sales for Item FK7 are as follows: Sep 1     inventory     115…

A: Perpetual inventory system: It is a method of inventory management that records real time…

Q: Three identical units of merchandise were purchased during March, as shown:       Units Cost Mar.…

A: a. Calculate the cost of goods, ending inventory, and gross profit under FIFO.

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: given  that, Units Available for sale = 2100 ending inventory = 500 units sold = 1600

Q: Motors has the following inventory information. Nov. 1 Inventory 30 units e s8.00 Purchase 120 units…

A: Under periodic system , the inventory are not valued at regularly basis, the valuation is done…

Q: Based upon the following data, estimate the cost of ending inventory using the gross profit method.…

A: Cost of goods sold=Sale×100-Gross profit rate=$894,000×100-39%=$545,340

Q: Serene Stereos has the following inventory data: Nov. 1 Inventory 30 units @ $6.00 each Purchase 120…

A: The cost of goods sold is the total amount paid by your company as a cost directly related to the…

Q: Beginning inventory, purchases, and sales for Product XCX are as follows: Sept. 1 Beginning…

A: Perpetual inventory is a method of accounting for inventory that records the sale or purchase of…

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…

Q: Purchases During the Period Sales During the Period 1st Purchase 500 units 1,000 units P2 1st Sale…

A:

Q: Beginning inventory, purchases, and sales for Item B901 are as follows: January 1 Inventory 36 units…

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

Q: Use the following information to calculate the a) value of inventory on hand on Mar 31, b) cost of…

A: Inventory valuation is used to determine the value of the total inventory hold by the business at…

Q: Beginning inventory, purchases, and sales for Item Copper are as follows:  Mar.   1  Inventory Sale…

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

Q: Beginning inventory, purchases, and sales for Item B901 are as follows: August 1 Inventory 54 units…

A: Under FIFO method, the good purchased at first are sold first.

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

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

Q: Beginning inventory, purchases, and sales for Item FK7 are as follows:  Sept.      1   Inventory 115…

A: Perpetual Inventory System: Perpetual inventory system is the method of recording stores balances…

Q: The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10…

A: In specific identification method , every item sold is specifically identified and cost of goods…

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.