The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 30,000 units at $30.00 Mar. 18 Sale 24,000 units May 2 Purchase 54,000 units at $31.00 Aug. 9 Sale 45,000 units Oct. 20 Purchase 21,000 units at $32.10 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round unit cost to two decimal places, if necessary. Schedule of Cost of Merchandise SoldWeighted Average Cost Flow Method   Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1               $ $ Mar. 18         $ $       May 2   $ $             Aug. 9                   Oct. 20                   Dec. 31 Balances         $   $ $

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

A: a.

Q: The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a…

A: Under LIFO (Last in First out) method, whenever a sale happens then items which are bought recently…

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: A company uses a weighted-average perpetual inventory system. The following transactions took place…

A: THE WEIGHTED AVERAGE PERPETUAL INVENTORY SYSTEM RECALCULATES A NEW UNIT COST WHENEVER A NEW PURCHASE…

Q: During the year, a firm's inventory purchases were as follows: Quarter Units Purchased Cost per Unit…

A: Cost of goods sold is the total cost incurred to produce goods during the particular year. It is…

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: Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a…

A: Under the Weighted Average Method, the unit cost of goods is determined by dividing the total cost…

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

A: The cost of the inventory is determined by three  methods. The methods are- FIFO - First in First…

Q: Mark Price Company uses the gross profit method to estimate inventory for monthly reporting…

A: Ending inventory = Goods available for sale - Cost of goods sold

Q: Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a…

A: Solution:   Computation of cost of merchandise sold and inventory balances after each transaction:

Q: On 1st May, the Opening Inventory balance of a product is 200 units @ 10 per unit. Using the…

A: Under FIFO method goods that are brought at earlier dates are sold first. Cost of goods sold include…

Q: The units of an item available for sale during the year were as follows: Jan. 1   Inventory 11…

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

Q: The Lippert Company uses the periodic inventory system. The following July data are for an item in…

A: Total units available for sale = 30 + 50 + 25 = 105 units Units sold = 60 units Ending inventory =…

Q: Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a…

A: Weighted average cost flow method - Perpetual Inventory System The weighted average cost method, a…

Q: The beginning inventory of merchandise at Alfredson Co. and data on purchases and sales for a…

A: 1.

Q: A company had the following purchases during its first year of operation Purchases Sales January…

A: Introduction:- FIFO means First in first out method. It is one of the inventory valuation method.…

Q: On 1st May, the Opening Inventory balance of a product is 200 units @ 10 per unit. Using the…

A: Inventory means the stock of goods in hand . Goods means the thing in which the business deals and…

Q: The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are…

A: Periodic inventory system: Under this method, all the updates regarding sale and purchase of…

Q: The units of an item available for sale during the year were as follows: Jan. Inventory 1,800 units…

A: Calculation of Cost of goods available for sales and units sold: Ending results are as follows:

Q: A company has 10,000 units of merchandise with unit cost of ₱50 at the beginning of the year.…

A: Introduction: FIFO: FIFO stands for First in First out which means first received inventory to be…

Q: Mark Price Company uses the gross profit method to estimate inventory for monthly reporting…

A: Net Sales = Sales revenue - Sales returns = $1,000,000 - $70,000 = $930,000 a. Cost of goods sold =…

Q: The remainder of the chart is in the second image.

A: Perpetual Inventory System:  Perpetual Inventory System refers to the inventory system that…

Q: The units of an item available for sale during the year were as follows: Jan. 1 Inventory 1,010…

A: Particulars Units Price per unit Total value Jan. 1 1010 $126           1,27,260…

Q: The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a…

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

Q: The units of an item available for sale during the year were as follows: Jan. 1 Inventory 1,800…

A: “Hey, since there are two questions posted, we will answer first question(EX 7-13). If you want any…

Q: The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are…

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

Q: Our company had the following balances and transactions during the current year related to…

A: Under LIFO method, goods bought in last are sold first .  Out of total 150 units sold , units which…

Q: Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a…

A: Perpetual inventory system is one of inventory system which records inventory value on real time…

Q: Russell Retail Group begins the year with inventory of $51,000 and ends the year with inventory of…

A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…

Q: The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are…

A: LIFO: LIFO stands for Last in First out which means last received inventory to be sold first.

Q: A company had the following purchases during its first year of operations: Purchases Sales January…

A: Introduction:- As per the FIFO method, First comes into inventory first goes out. which means first…

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

A: The weighted average cost is calculated after the purchase made.   Weighted average cost = Total…

Q: The Lippert Company uses the periodic inventory system. The following July data are for an item in…

A: Working: FIFO   Purchases+Beginning Inv. Cost of Goods Sold Balance in Inventory Date Units…

Q: A company had the following purchases during its first year of operations: Purchases Sales 20 units…

A: Month Purchases Sales Jan 20 units at $7 April 30 units at $8 May    15 units at $14

Q: The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a…

A: The question is based on the concept of the cost accounting

Q: The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a…

A: Req-1                   Perpetual LIFO:                     Beginning Inventory & Purchases…

Q: The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a…

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

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

A: As the form illustrated mentioned in the question is not available, the answer is given in  the…

Q: The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a…

A: “Hey, since there are multiple questions posted, we will answer first  three question. If you want…

Q: The following units of an inventory item were available for sale during the year: Beginning…

A: Periodic Inventory System: The periodic inventory system, records inventory balance on hand…

Q: Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a…

A: Under the Weighted Average Cost Flow Method Under Perpetual Inventory System, cost per unit is…

Q: The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a…

A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…

Q: Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a…

A: Inventory valuation can be done under different methods like FIFO,LIFO, Weighted Average.To…

Q: Russell Retail Group begins the year with inventory of $52,000 and ends the year with inventory of…

A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…

Q: Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a…

A: Schedule of cost of Merchandise sold is prepared as follows:

Q: Assume ShoeFanatic.com began May with 10 units of inventory that cost a total of $200. During May,…

A: Perpetual Inventory System:- It is a system where the record of inventory buying and selling is a…

Q: The following units of an item were available for sale during the year: Beginning inventory 21,600…

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

Q: The beginning inventory of screws on Jan 1 was 1,000 units at $20.00. Inventory on hand was 800…

A: Cost of goods refers to the expenses which are related to production or manufacturing the goods to…

Q: The Lippert Company uses the periodic inventory system. The following July data are for an item in…

A: In the periodic inventory system, the cost of goods sold and the inventory on hand is calculated at…

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.