Three identical units of Item K113 are purchased during July, as shown below.   Item K113 Units Cost July 9 Purchase 1 162 17 Purchase 1 176 26 Purchase 1 197 Assume that one unit is sold on July 31 for $254. Determine the gross profit for July using the last-in,first-out (LIFO) method.

Q: The following lots of a particular commodity were available for sale during the year: Beginning…

A: A periodic inventory system or the periodic inventory method is an accounting method in which one…

Q: What is this?

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

Q: Three identical units of merchandise were purchased during July, as follows: Date Product T Units…

A: Gross profit = Sales - Cost of goods sold Ending inventory = Total cost of goods available for sale…

Q: A company purchased 130 units for $30 each on January 31. It purchased 170 units for $25 each on…

A: Cost of goods sold = 130 * $30 + 40 * $25 Cost of goods sold = $3,900 + $1,000

Q: June Corp. sells one product and uses perpetual inventory system. The beginning inventort consisted…

A: FIFO, first in first out is one of method which is used for inventory valuation under this method…

Q: Vaughn Company uses a periodic inventory system. For April, when the company sold 540 units, the…

A: Under periodic inventory system, the cost of goods sold is taken as the residual value after…

Q: The following hammers were available for sale during the year for Wilkins Tools: Beginning…

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

Q: During the year, Wright Company sells 460 remote-control airplanes for $120 each. The company has…

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

Q: 1. ABC Co sells furniture. Information relating to ABC's purchases of furniture during September is…

A: Inventory valuation is a technique that is used to determine the value of the ending inventory and…

Q: Cullumber Company sells one product. Presented below is information for January for Cullumber…

A: Periodic Inventory system - The inventory quantity is determined periodically by physical count…

Q: The following hammers were available for sale during the year for Wilkins Tools: Beginning…

A: UNDER LAST IN FIRST OUT METHOD (LIFO) , THE COST OF THE MOST RECENT PURCHASED ITEM ARE FIRST TO BE…

Q: During the year, Wright Company sells 475 remote-control airplanes for $120 each. The company has…

A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…

Q: Three identical units of merchandise were purchased during July, as follows: Date Product T Units…

A: Sales Revenue = $51   Under the FIFO method, goods purchased at the earliest are sold first.…

Q: Three identical units of Item K113 are purchased during July, as shown below.   Item K113 Units…

A: LIFO or Last-In-First-Out is a method of inventory valuation where the inventory is valued at the…

Q: Crane Company sells one product. Presented below is information for January for Crane Company.…

A: Using periodic system, the cost of goods sold is not recorded regularly. It is estimated and…

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

A: FIFO is the method of valuation of inventory in which the earliest inventory hold by the…

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

A: Under the FIFO method, the earliest purchases are sold first. Therefore, the cost of goods sold…

Q: Three identical units of merchandise were purchased during July, as follows: Date Product T Units…

A: First-in-First-Out (FIFO):   In First-in-First-Out method, the costs of the initially purchased…

Q: Inventories There are three identical units of item JC07 are purchased during August, as shown…

A:

Q: At the beginning of November, Yoshi Inc.'s inventory consists of 63 units with a cost per unit of…

A: Inventory cost refers to the price paid for the inventory in addition to any other costs that are…

Q: Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it…

A: As per LIFO method it assumes units purchased at last is sold out first. On oct4, the sold units are…

Q: A company using perpetual FIFO has the following data for August: Beginning inventory: 150 units…

A: Cost of goods sold for 80 units = 80 units x $11 = $880   Sales = 80 units x $25 = $2,000

Q: Determine the cost of goods sold under LIFO:

A: Answer Cost flow statement using LIFO     Cost of Goods Available for Sale     Cost of Goods Sold…

Q: hree identical units of merchandise were purchased during July, as follows: Date Product T Units…

A: Inventory valuation can be done using three methods; FIFO LIFO Average cost.

Q: Bramble Corp. began the year with 10 units of marine floats at a cost of $12 each. During the year,…

A: First in first out: It refers to the method of inventory valuation that calculates the balance of…

Q: The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records…

A: Date  Purchase Cost of goods sold Balance Inventory Quantity  Cost per Unit (In $)   Total Cost…

Q: Tamarisk Company sells one product. Presented below is information for January for Tamarisk Company.…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: The following information is for Fair Trader Company for the month of May. Fair Trader uses a…

A: solution working note goods available for sale date particular unit rate amount…

Q: The following amounts and costs of platters were available for sale by Sierra Pottery during the…

A: Under weighted average cost of inventory, weighted average cost per unit will be calculated for…

Q: At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of…

A: Note: The general format has been followed to calculate cost of goods sold and ending inventory as…

Q: Sunland Company reports the following for the month of June. Date Explanation Units…

A: 3. Moving-Average - Under the Moving-Average Method, the cost is considered to be average at the…

Q: LIFO and FIFO. What is the differences? Examples

A: Computations under FIFO

Q: The following data is available for one of the products sold by Chan Company for the month of April:…

A: This question is related to inventory valuation, there are many methods of inventory valuation such…

Q: On January 24, Keaton sold 200 units of this product. The other 160 units remain in inventory at…

A: Under LIFO Method, units that come in last will be sold first and the inventory will be out of the…

Q: The following lots of a particular commodity were available for sale during the year: Beginning…

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

Q: The following lots of a Commodity P were available for sale during the year. Beginning inventory 5…

A:

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

A: Calculate the weighted average unit cost:

Q: A company had the following purchases during its first year of operations: Purchases Sales January 6…

A: Introduction Cost of goods available for sales are those goods which are purchased or manufactured…

Q: Three identical units of merchandise were purchased during July, as follows: Date Product T Units…

A: PLEASE LIKE THE ANSWER      Gross profit  COGS  Ending Inventory  ANSWERS:…

Q: The following lots of a Commodity P were available for sale during the year. Beginning inventory 5…

A: FIFO Method = First in First out is a method of inventory valuation in which it is assumed that…

Q: During the year, Wright Company sells 425 remote-control airplanes for $110 each. The company has…

A: Under LIFO method, the units purchased later are sold at first. The older units are left in the…

Q: Portage Retail Group begins the year with inventory of $48,000 and ends the year with inventory of…

A: The cost of goods sold is the entire amount your employer pays as a cost directly tied to the…

Q: June Corp. sells one product and uses a perpetual inventory system. The beginning inventory…

A: The Cost of goods sold is always calculated without the profit part that is at cost.

Q: During the year, Wright Company sells 320 remote-control airplanes for $100 each. The company has…

A: There are various methods by which the cost of ending inventory and cost of goods sold can be…

Q: The following amounts and costs of platters were available for sale by Sierra Pottery during the…

A: Given that, Beginning inventory = 10 units @ $41 Purchases = 15 units @ $55 Second purchase = 30…

Q: July 1, purchased 10 units for $910 or $91 per unit; July 3, purchased 15 units for $1,590 or $106…

A: FIFO: FIFO stands for First-In, First-Out. As its name suggest, this method assumes that the oldest…

Q: Bramble Company sells one product. Presented below is information for January for Bramble Company.…

A: In the periodic method, all inventory is physically counted at the end of the accounting period and…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Answer: Concept Perpetual inventory               Under perpetual inventory the inventory is…

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.