The following is a record of Tamarisk Company’s transactions for Boston Teapots for the month of May 2020. May 1   Balance   464 units  @  $20.00   May 10   Sale   348 units  @  $34.00 12   Purchase   696 units  @  $25.00   20   Sale   626 units  @  $34.00 28   Purchase   464 units  @  $30.00              Assuming that perpetual inventories are not maintained and that a physical count at the end of the month shows 650 units on hand, what is the cost of the ending inventory using (1) FIFO and (2) LIFO?     Assuming that perpetual records are maintained and they tie into the general ledger, calculate the ending inventory using (1) FIFO and (2) LIFO.

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A: Sales Jan,10,2019 8000 15 120000   Jan,25,2019 3000 17 51000     11000   171000

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A: FIFO (First-in First Out): Under FIFO inventory accounting, units prurchased first are sold first.…

Q: The following information is taken from the financial statement of Al Reem Manufacturing LLC for the…

A: Total no of units received= No of units received each day for particular period

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A: Introduction: When calculating the cost of maintaining inventory, organisations might use one of…

Q: [The following information applies to the questions displayed below.] Home Hardware reported…

A: Journal entry is a primary entry that records the financial transactions initially.

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A:

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Q: following information is taken from the financial statement of Al Reem Manufacturing LLC for the…

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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: The following is a record of Pervis Ellison Company's transactions for Boston Teapots for the month…

A: a. Assuming that perpetual inventories are not maintained and that a physical count at the end of…

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A: The inventory can be valued using various methods as FIFO and moving average method.

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Q: The following information is taken from the financial statement of Al Reem Manufacturing LLC for the…

A: Total no. of units issue  = 30 + 150 + 100                                      = 280 units

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.