The management of Shamrock, Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the accounting records show these data. Inventory, January 1 (12,500 units)   $ 50,000 Cost of 129,000 units purchased   568,200 Selling price of 104,000 units sold   796,000 Operating expenses   129,500 Units purchased consisted of 36,000 units at $4.20 on May 10; 67,000 units at $4.40 on August 15; and 26,000 units at $4.70 on November 20. Income taxes are 28%.(a) Prepare comparative condensed income statements for 2022 under FIFO and LIFO.  (Include calculations)

Q: At December 31, 2021, Bosan Corporation has 4,900 units of Model 63 and 3,500 units of Model 64 in…

A: The inventory value is calculated as lower of cost or Net realizable value.

Q: Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods…

A: The monetary value connected with the products in inventory at the conclusion of an accounting…

Q: Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value…

A: Using LIFO method, the inventory at last would be sold first and old inventory would be in ending…

Q: Hogan Industries had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1,…

A: Lets understand the basics. Gross profit is a profit generated from the sales. Gross profit = Sales…

Q: andhill Co. uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The…

A: Solution: Inventory at lower of cost or market (applied to individual items)   Units Unit cost…

Q: On January 1, 2021, the National Furniture Company adopted the dollar-value LIFO method of computing…

A: Inventory is the current assets of the company that is used in the production process.

Q: The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost…

A: Calculation of COGS under FIFO method As per FIFO Method: Particulars Units Cost per unit Total…

Q: Over a four-year period, Jackie Corporation reported the following series of gross profits.…

A: Gross profit: It can be defined as the difference between the cost of goods sold and the net sales…

Q: At the beginning of the current period, Haitijah Industries has 150 units of a product with a unit…

A: under FIFO Method  the goods which bought first will be sold first  under LIFO method the goods…

Q: You are assigned to prepare the financial statements of LIVA Company for the year 2021. The…

A: Calculation of Ending Inventory at Retail Ending Inventory at Retail = Ending Inventory at Cost/…

Q: Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods…

A: (1) Compute the Sparrow's ending inventory and cost of goods sold using the retail inventory method…

Q: During the current period, Haitijah sells 340 units.   A. Assume Haitijah uses the FIFO method.…

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

Q: At the beginning of the current period, Viraat Industries, which uses a periodic inventory system,…

A: a. Cost of goods sold = Beginning Inventory units + Purchase #1 units + Purchase #2 40 units =…

Q: Pierce Ltd. (Pierce) decided to change the costing method for its inventory at its December 31,…

A: Inventories are valued as per the accounting and valuation method followed by the company. There are…

Q: Baldor Company reports inventory at cost of $72,000 and retail of $156,000 on January 1, 2020.…

A: Retail Method: This is a method used to determine the relationship between the cost price and the…

Q: The following information was taken from the accounting records of Tampa Roofing Company for the…

A: Under fifo method of inventory valuation the units purchased first will be sold first. And in…

Q: What is the amount of inventory on March 31 using the moving average cost flow technique? During…

A:

Q: Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: LIFO (LIFO stands for Last-in Last-Out) refers to the process of inventory valuation on the basis of…

Q: Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: Businesses that employ the LIFO Inventory Costing Method sell their old inventory stock through the…

Q: Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since…

A: What is meant by Inventory? It is the stock that is left unsold at the end of the year. Inventory…

Q: Barton Company began business on July 1, 2022 and made the following four inventory purchases in…

A: Cost of goods sold is the amount of cost incurred on the making of the goods sold. In other words,…

Q: A company's inventory on December 31, 2024, was $338,000 based on a physical count priced at cost,…

A: Correct answer is (B) $457,000   Particulars  Note Amount($) Inventory at December 31, 2024…

Q: Kingston Company uses the dollar-value LIFO method of computing Inventory. An external price Index…

A: LIFO stands for Last in, first out, it is the method which is used for the inventory accounting that…

Q: Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value…

A: Solution: To compute dollar value LIFO inventory, first we compute  price index for every year by…

Q: On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one inventory…

A:

Q: Sheffield inventory turnover ratio in 2022 was

A: Inventory Turnover ratio =Cost of Goods Sold/Average Inventory

Q: Mercury Company has only one Inventory pool. On December 31, 2021, Mercury adopted the dollar-value…

A: The dollar value method to valuate the LIFO inventories , is a method which determines the cost by…

Q: Monami Company uses the weighted average method to determine the cost of its inventory.  Monami…

A: Perpetual inventory system records the inventory on real time basis.

Q: You are assigned to prepare the financial statements of LIVA Company for the year 2021. The…

A: Average Cost Method: The average cost technique gives a cost to inventory items based on the overall…

Q: The management of Sheffield Corp. asks your help in determining the comparative effects of the FIFO…

A: Income Statement reflects the net income earned by the organization after payment of all the…

Q: Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index…

A: Inventory: it refers to all the items, goods, merchandise, and materials held by a business for…

Q: At December 31, 2022, the following information (in thousands) was available for Swifty Inc.: ending…

A: Formula: Inventory turnover = ( Cost of goods sold / Average inventory )

Q: The Reuschel Company began 2018 with inventory of 10,000 units at a cost of $7 per unit. During…

A: Requirement 1: The cost of goods sold under LIFO:

Q: Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: 1. 2021: Out of Beginning Inventory 1,000 (11000- 10000)           $ 16 $16,000 Out of…

Q: The following information was available for Oriole Company at December 31, 2022: beginning inventory…

A: Compute the average inventory.

Q: At the beginning of the current period, Viraat Industries, which uses a periodic inventory system,…

A:

Q: he following data are available for Sellco for the fiscal year ended on January 31, 2020:…

A: Calculation of COGS and ending inventory: FIFO COGS= (500*4)+(600*5)+(500*6) =2000+ 3000 +3000 =$…

Q: Based on our understanding of inventory cost flows, and given the information listed below for the…

A: The correct answer is option (e).

Q: The following information was available for Metlock, Inc. at December 31, 2022: beginning inventory…

A: Formula:

Q: A company has the following information available that was used to report inventory using the…

A: The cost index represents the cost fluctuations incurred by businesses as a result of the…

Q: Causwell Company began 2018 with 10,000 units of inventory on hand. The cost of each unit was $5.00.…

A: 1.

Q: The management of Swifty Inc. is reevaluating the appropriateness of using its present inventory…

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

Q: The management of Blue Spruce Corp. is reevaluating the appropriateness of using its present…

A: Working note: Computation of value of ending inventory under FIFO and LIFO method:

Q: The following data are extracted from the records of an entity relating to an inventory item:…

A: Beginning balance                                 5,000     *          200        = 1,000,000…

Q: AAA Hardware uses the LIFO method to value its inventory. Inventory at the beginning of the year…

A: FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it…

Q: Encantadia Company had the following inventories on January 1, 2020: Inventory Cost Amihan 725,200…

A:

Q: The management of Oriole Company asks your help in determining the comparative effects of the FIFO…

A: Inventory: Inventory refers to the entire stock of goods purchased, goods utilized and goods…

Q: Lily Technologies Company reported the following income statement data for a 2-year period.…

A: The income statement is one of the essential part of financial statements used for reporting the…

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.