The following information relates to the inventory of Margaret’s Megamart Ltd during December. Ignore GST.   Date   Units Units cost Total cost 1/12 Beginning inventory 700 $ 12.00 $ 8,400 10/12 Purchase 500 12.60 6,300 15/12 Purchase 300 13.20 3,960 23/12 Purchase 500 14.00 7,000   Totals 2,000   $25,660   Margaret’s Megamart Ltd uses the periodic inventory system. A physical count on 31 December verified that 650 units were on hand.   Required: Determine the Ending inventory and Cost of Sales for the month of December, using the FIFO costing method. (3 marks) Determine the Ending inventory and Cost of Sales for the month of December, using the weighted average costing method. (3 marks) Which cost flow method(s) resulted in higher gross profit on sales? a higher ending inventory? Explain your results. (2 marks)

Q: Sheffield Corp. uses a periodic inventory system. Its records show the following for the month of…

A: FIFO Method assumes that goods purchased first are sold first which means closing stock will…

Q: Adams Corporation uses a periodic inventory system and the retail inventory method to estimate…

A: Net purchase at retail = Goods available at retail - markups + markdowns  Goods available at retail…

Q: The following information relates to the inventory of Margaret’s Megamart Ltd during December.…

A: Periodic inventory system: Under this system, the physical count of goods at specific interval is…

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: A record of transactions for the month of May is as follows:     Purchases Sales   Units Unit…

A: Cost of Goods Sold is the cost of producing the goods, and it consists of direct materials, direct…

Q: The following units of a particular item were available for sale during the calendar year: Jan. 1…

A: Weighted average cost method: It is an inventory valuation method that is used to compute the cost…

Q: Altira Corporation provides the following information related to its merchandise inventory during…

A:

Q: Altira Corporation provides the following information related to its merchandise inventory during…

A: The system of inventory under which updates in inventory are  done on periodic basis is called as…

Q: Marigold Company uses a periodic inventory system. For April, when the company sold 550 units, the…

A: Definition:   Periodic inventory system: The method or system of recording the transaction related…

Q: The following units of a particular item were available for sale during the calendar year: Jan. 1…

A: First-in-First-Out (FIFO): In the First-in-First-Out method, the first purchased items are sold…

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

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

Q: ssume that the company uses perpetual inventory system and weighted average method, prepare journal…

A:

Q: The following information relates to the inventory of Margaret’s Megamart Ltd during December.…

A: Particulars Units Cost per unit Total Cost (A) Goods 2000   25660   Closing stock…

Q: Miguel, Inc. uses a periodic inventory system. The company's beginning inventory of a particular…

A: For the purpose of inventory valuation, there are many methods that are used. These are first in…

Q: In the month of April 2004, the following transactions took place at Green Meadows. Compute the…

A: Total Units available = 30 + 50 + 20 = 100 units Units sold = 10 + 35 = 45 units Units in hand = 100…

Q: Crane Company uses a periodic inventory system. For April, when the company sold 400 units, the…

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

Q: The following information was available from the inventory records of Apollo Company for January:…

A: Formula: Inventory value at year end = No. of units in ending inventory x Average cost per unit…

Q: The following information relates to the inventory of Margaret’s Megamart Ltd during December.…

A: Periodic inventory system: It involves the physical count of goods at a specific interval of time.…

Q: Gingerbread, Corp. presents the following information for inventory purchases and sales throughout…

A: "Periodic" means that the Inventory account is not routinely updated during the accounting period.…

Q: Fight Company is a wholesaler of office supplies. The FIFO periodic inventory is used. The entity…

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

Q: The records at the end of January of the current year for Young Company showed the following for a…

A: Under FIFO Method, Units which comes in first will be sold first and the inventory will be out of…

Q: Crane Company uses a periodic inventory system. For October, when the company sold 1,690 units, the…

A: Introduction: FIFO inventory method: FIFO stands for First-in First-Out. As the name suggests, this…

Q: Fight Company is a wholesaler of office supplies. The FIFO periodic inventory is used. The entity…

A: Under FIFO method the oldest products in inventory have been sold first.

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

A: Average cost method of inventory says that cost of ending inventory and cost of goods sold should be…

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

A: Under Specific Identification Method, Cost of goods sold and value of ending inventory is calculated…

Q: The following information was available from the inventory records of Swifty Corporation for…

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Q: LoBianco Company's record of transactions for the month of April was as follows. Purchases…

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

Q: The following information was available from the inventory records of Rich Company for January:…

A:

Q: John Adams Company's record of transactions for the month of April was as follows. Purchases…

A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Sunland Company uses a periodic inventory system. For October, when the company sold 1,730 units,…

A: FIFO inventory method: It is an inventory valuation method that helps in calculating the ending…

Q: Gerald D. Englehart Company uses a perpetual inventory system. The company has the same inventory,…

A: The FIFO method helps the management in determining the COGS by assuming that the goods being sold…

Q: Coronado Company uses a periodic inventory system. For April, when the company sold 450 units, the…

A: Ending Inventory = Opening inventory + Purchase - Sold Ending Inventory = 330 + 380 + 290 - 450…

Q: Al Falah Co. uses a periodic inventory system. Its records show the following for the month of May,…

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

Q: The following information was available from the inventory records of MAX Company :for March Units…

A: Weighted average cost method is an inventory valuation method in which cost of goods sold and ending…

Q: The records at the end of January of the current year for Young Company showed the following for a…

A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

Q: The following information relates to the inventory of Margaret's Megamart Ltd during December.…

A: Under the FIFO method, the inventory purchased earlier is assigned to cost of goods sold first and…

Q: The following information was available from the inventory records of Moen Company for January:…

A: 1. Total cost = P29310 + P20600 + P28917 = P78827 2. Total number of units = 3000 + 2000 + 2700…

Q: Jessie Stores uses the periodic system of calculating inventory. The following information is…

A: The first in, first-out (FIFO) inventory valuation method is based on the cost flow assumption that…

Q: The following information relates to the inventory of Margaret's Megamart Ltd during December.…

A:

Q: Gerald D. Englehart Company uses a perpetual inventory system. The company has the same inventory,…

A: The inventory can be valued using various methods as FIFO, LOFO and moving average method under…

Q: ABC company started its operations this year and began with no inventory on hand. It provided the…

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

Q: The beginning inventory and the purchases and sales of inventory for March for the Carolina Company…

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

A:

Q: SOVEREIGN Industries' inventory during the year is given below. The company uses a periodic…

A: Total units sold = 4200 + 2000 + 2500 + 3000 + 1000 - 400 = 12300 units   In the FIFO method, units…

Q: Gingerbread, Corp. presents the following information for inventory purchases and sales throughout…

A: As per FIFO Method units are sold on First in First out basis which means units purchased or already…

Q: oBianco Company's record of transactions for the month of April was as follows. Purchases   Sales…

A: The inventory valuation is performed using various inventory methods as LIFO, FIFO and weighted…

Q: The following information was available from the inventory records of Sheffield Corp. for January:…

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

Q: Altira Corporation provides the following information related to its merchandise inventory during…

A: FIFO Method:FIFO stands for first-in, first-out, meaning that the oldest inventory items are…

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.