The Wacky Widget Company uses a periodic inventory approach. The units of items avalible for sale during the year are as follows: Jan 1: Beginning Inventory     90units@$54 each Mar 10: Purchase                    112units@$55 each Aug 30: Purchase                    100units@$58 each Dec 12: Purchase                     98units@$60 each There are 104 units of the item in the physical inventory on Dec 31. Determine the cost of merchandise sold under the FIFO, LIFO and Weighted Average Cost methods.

Q: The units of an item available for sale during the year were as follows: January 10 Inventory 27…

A: This Numerical has covered the concept of Valuing of Ending Inventory Under Periodic Method. In the…

Q: In its first month of operations, Weatherall Company made three purchases of merchandise in the…

A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…

Q: In its first month of operations, Sheridan Company made three purchases of merchandise in the…

A: In organization, there are two system for inventory valuation. (1) Perpetual Inventory system (2)…

Q: Wildhorse Lighting had a beginning inventory of 31 units at a cost of $7 per unit on August 1.…

A: Total goods available for sale=Beginning inventory+Purchases=31+36+46+41=154

Q: Cost of goods Sold

A: Jan 1 400 $7.00 $2800   Feb 15 1000 $7.50 $7500   June 30 1400 $8.00 $11200   Nov 25 1200…

Q: he units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory…

A:

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: Carla Vista Lighting had a beginning inventory of 18 units at a cost of $7 per unit on August 1.…

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

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: Sunland Company had a beginning inventory on January 1 of 180 units of Product 4-18-15 at a cost of…

A: The LIFO strategy works under the presumption that the last item of stock acquired, is the item that…

Q: Walstrom Company uses a perpetual inventory system and had the following inventory transactions for…

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

Q: The Barton Corporation company has the following purchases and sales during the year ended December…

A: The cost of goods available for sale includes the sum of beginning inventory and goods purchased…

Q: Date Purchases Sales Balance Quantity Cost Quantity Cost Quantity Cost $72 Nov 1 65 Nov 3 120 $60 65…

A: Cost of goods sold refers to the direct expenses involved in the production of the goods sold by a…

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: Grays Company has the following purchases and sales during the month of August. Using the FIFO…

A: Inventory valuation method includes: First in first out Last in first out Weighted average method…

Q: AAA Company uses a periodic inventory system and has the following information regarding its…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

Q: The units of an item available for sale during the year were as follows: Jan. 1 Inventory 8 units…

A: As per the LIFO method, those units are issued first, which are purchase last. So it means the…

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

A: Calculate the cost of merchandise sold and ending inventory. (Weighted average method).

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: Johnson Company reports the following inventory information for beginning inventory, purchases, and…

A: LIFO: In Last-in-first-out it is assumed that the last purchased item will be sold first. So, the…

Q: The Hat Store had the following series of transactions for Year 2. Date Description Transaction…

A: >Cost flow from units purchased to Cost of goods sold can be done using either of the 4 methods…

Q: Marigold uses the periodic inventory system. For the current month, the beginning inventory…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: AL ZAIN ltd uses a periodic inventory system. Its records show the following for the month of May,…

A: Calculate the cost of goods sold and ending inventory cost under FIFO.

Q: he units of an item available for sale during the year were as follows: Jan. 1 Inventory 7 units @…

A: solution ending inventory             =7 units a inventory cost by FIFO =under FIFO the goods…

Q: Oriole Company sells one product and uses a perpetual inventory system. The beginning inventory…

A: UNDER LIFO METHOD (LAST PURCHASED FIRST SOLD )

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

A: Average cost means where the cost of units sold and closing inventory is valued at average cost…

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

A: Last-in, first-out is the method of inventory valuation where the item that is purchased or…

Q: The following units of an item were available for sale during the year: Beginning inventory 22 units…

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

Q: San Lorenzo General Store uses a periodic inventory system and the retail inventory method to…

A: Periodic Inventory System: Periodic inventory system is an arrangement of stock wherein refreshes…

Q: The units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory…

A: Calculate Units sold:  Units Sold=Total units avaialble-Inventory at November 30=97-13=84

Q: Muscat Company uses the periodic inventory system to account for inventories. Information related to…

A: FIFO METHOD It is an accounting method for valuation of assets. Under FIFO method , inventory of…

Q: Larkspur Company uses a perpetual inventory system. Beginning inventory is 2,700 T-shirts at a cost…

A: Lets understand the basics. There are various type of inventory systems are followed by the entities…

Q: Blue stick company just began and the following four inventory purchases in July. July 1st 150 units…

A: Under the FIFO method of inventory, the ending inventory includes the latest purchases whereas the…

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

A: Ending inventory is the cost of items on board at the end of the reporting period. For a corporation…

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

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

Q: Larkspur, Inc uses a periodic inventory system and reports the following for the month of June. Date…

A: Units Sold = Units available for sale - Units in ending inventory Units Sold = 670 - 203…

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: Zaynab Company uses a periodic inventory system. Its records show the following for the month of…

A: Ending inventory is the part of inventory that the entity couldn't sell in the current financial…

Q: Morgenstern Ltd. has the following units and costs for the month of April. Beginning inventory,…

A: FIFO means first in first out which means that inventory which is recieved first , will be sold…

Q: Bramble Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June…

A: Introduction:-  The carrying value of products sold within a certain period is known as the cost of…

Q: Addison, Inc. uses a perpetual inventory system. The following is information about one inventory…

A: FIFO is the inventory valuation which means First in First out. This method says that inventory…

Q: The units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory 25…

A: Inventory valuation methods are different methods used to allocate the value to the inventory. They…

Q: Klump Co. uses a perpetual inventory system and had the following inventory transactions for the…

A: LIFO: Last-In First Out:- As per LIFO method, units purchased last are sold first. Under perpetual…

Q: Sheffield Corp. uses a periodic inventory system. Details for the inventory account for the month of…

A: The units sold are calculated as difference between total units available for sale and Inventory…

Q: Coronado has the following inventory information. July 1 Beginning Inventory 20 units at $20 $400…

A: Total units available for sale = 20 + 50 + 10 = 80 units No. of units sold = Total units available…

Q: Neverstop Corporation sells item A as part of its product line. Information about the beginning…

A: Ending inventory ( Units ) = Opening inventory + Purchases - Sales…

Q: Using a perpetual inventory system. This company's beginning inventory of a product and its…

A: Calculate the cost of goods sold under LIFO method:

Q: Mika Corporation uses FIFO method to calculate the value of Inventory on hand on March 31 and cost…

A: First In, First Out (FIFO) is part of an accounting method where assets which are acquired first 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.