Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with 2,000 units of inventory carried at LIFO cost of $20 per unit. During the first quarter, it purchased 8,000 units at an average cost of $40 per unit and sold 9,500 units at $60 per unit.Assume the company does not expect to replace the units of beginning inventory sold; it plans to reduce inventory by year-end to 500 units. What amount of cost of goods sold should be recorded for the quarter ended March 31?a. $335,000b. $350,000c. $380,000d. $387,500

Q: Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception…

A:

Q: Hubble Space Incorporated has the following data which includes inventory conversion period or ICP…

A: Inventory conversion period is the number of days required to convert raw materials into finished…

Q: Chavez Wholesale Inc. changed its method of valuing inventory from the average cost method to the…

A: To generate a journal entry, you enter transaction records into your company's books. Your journal…

Q: In its first month of operation, Concord Corporation purchased 310 units of inventory for $11, then…

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

Q: If this were done, by how much would inventories decrease? Ass

A: Information Provided: Inventory = 20,000 COGS = 85,000 ICP (current) = 85.88 Benchmark ICP = 38

Q: Flite Company had beginning inventory on May 1 of $12,000. During the month, the company made…

A: Cost of goods available = Beginning Inventory + Goods purchased - Purchase return Cost of goods sold…

Q: Use the following information for Problems 32 and 33.Tristan, Inc., uses the LIFO cost-flow…

A: Cost of goods sold (LIFO) = 8000 units purchased for $40 per unit + 1500 units from beginning…

Q: Cinnamon Corp. started business in 2007 and uses the weighted average cost method.During 2007, it…

A: Under weighted average cost method, the total cost of goods is divided by total number of units…

Q: Kylah Enterprises began the current month with inventory costing $10,000, then purchased inventory…

A: Perpetual Inventory System is maintained on a continual basis or perpetual record is maintained for…

Q: Urban Technology began the year with inventory of $320,000 and purchased $1,800,000 of goods during…

A: Cost of goods available for sale = Beginning inventory + Purchases

Q: Allison Co. has a beginning inventory costing $90,000 and an ending inventory costing $120,000.…

A: Inventory Turnover Ratio = (Cost of merchandise Sold / Average Inventory)

Q: Cost of goods sold for Abe Distributors was $550,330 for the year. If the beginning inventory at…

A: Ratio analysis is one of the important technique of management accounting. Under this, various…

Q: 1. Assume the company does not expect to replace the units of beginning inventory sold; it plans to…

A: LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the…

Q: Hubble Space Incorporated has the following data which includes inventory conversion period or ICP…

A: Inventory refers to the goods or items which are stored by the business either for selling or for…

Q: The cost of goods sold for Veltron International last year amounted to $547,800, and the average…

A: The question is related to Ratio Analysis. Inventory turnover is calculated with the help of…

Q: Handbags, Inc. had 200 units of inventory on hand at the end of the year. These were recorded at a…

A: As per lower-of-cost-or-market rule Inventory will be recorded at lower of cost or market value.

Q: Win Company, which uses the FIFO inventory method, had 300,000 units ih inventory at the beginning…

A: Given, Company follows FIFO method;   Beginning Inventory = 300000 units Costing $ 50 each Details…

Q: A Shirts Company uses a periodic inventory system. During the first year of operations, the company…

A: Formula: weighted average cost per unit = Total purchase value / Total units Division of total…

Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…

A: Last in first out (LIFO) method of inventory valuation gives preference to value of inventory…

Q: $12,500 Purchases 25,000 Sales during January 20,800 The estimated inventory at January 31, 2004, is…

A: The right option is c . $21,500

Q: According to a FIFO calculation, Montana Co. estimated its year-end inventory to be worth $649,000.…

A: As per inventory valuation method, the finished goods inventory on balance sheet are carried at…

Q: Windsor, Inc. uses a perpetual inventory system and reported $513,260 of inventory at the beginning…

A: Inventory as per perpetual inventory system = Beginning inventory + Purchases - cost of goods sold =…

Q: Vibrant Company had $850,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A:

Q: At year-end, Delectable Company experienced a storm surge which caused severe damage to the entire…

A: Formula: Cost of good sold = Net Sales - Gross profit.

Q: Use the following information for Problems 32 and 33.Tristan, Inc., uses the LIFO cost-flow…

A: Total goods available for sale = Beginning inventory + Purchases = 2,000 units + 8,000 units =…

Q: The following information for Dorado Corporation relates to the three-month period ending September…

A: 1. Cost of goods sold (LIFO) = 400,000 units purchased at $24 each + 25,000 units from beginning…

Q: Vibrant Company had $950,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: The gross profit is calculated as difference between sales and cost of goods sold. Cost of goods…

Q: At the end of January, Mineral Labs had an inventory of 905 units, which cost $13 per unit to…

A: Under the LIFO method, the inventory which has been purchased most recently is sold first and under…

Q: Monroe Company had a beginning inventory of 350 cans of paint at $12 each on January 1 at a cost of…

A: Total cans purchased =Cans purchased on February 15 +Cans purchased on April 30 + Cans purchased…

Q: The cost of goods sold for Veltron International last year amounted to $547,800, and the average…

A: Inventory turnover refers to the rate at which the inventory in the company is sold, used, and…

Q: In its first month of operation, Vaughn Manufacturing purchased 320 units of inventory for $ 8, then…

A:

Q: Terry Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO.During the year,…

A: The closing stock is valued as above:

Q: The cost of goods sold for Veltron International last year amounted to $534,600, and the average…

A: The inventory turnover ratio can be calculated by dividing the cost of goods sold by average…

Q: Terry Company had January 1 inventory of $100,000 when it adopted dollarvalue LIFO. During the year,…

A: Given informationOpening stock (inventory) = $100000purchase = 600000Closing stock = 143360Base…

Q: .Your review of ABC Company's inventory and related records for the year revealed the following…

A: Gross profit ratio = Gross profit / Sales where, Gross profit = Sales - Cost of goods sold

Q: EFG Co. has 600 units in inventory that had been purchased for $22 each and that would currently…

A: Solution: Cost per unit of inventory = $22 Market price = $28.50 per unit According to accounting…

Q: Two years ago Angle Company starting using dollar-value LIFO for costing its inventory. The first…

A: LIFO is an acronym that stands for last-in, first-out. This is a stock valuation approach that…

Q: In its first year of business, Miss Take, the bookkeeper, erroneously recorded $10,000 of product…

A: Period costs are not manufacturing costs and are fully expensed in the period which they are…

Q: At year-end 20X8, Ancho Canned Chile has 8,000 units on hand at a weighted-average cost of $13 per…

A: Ending inventory is computed by adding the beginning inventory and purchases and then subtracting…

Q: Vaughn Manufacturing began using dollar-value LIFO for costing its inventory two years ago. The…

A: Solution: Computation of inventory at base year prices and change from prior year - David Davis…

Q: Traylor Corporation began the year with three items in beginning inventory, each costing $5. During…

A: Particulars Units Price per unit Total value Beginning inventory 3 $5 $15 Purchases 5 $6 $30…

Q: In its first month of operation, Waterway Industries purchased 340 units of inventory for $9, then…

A: Given data: Days Purchase units Rate Total 1 340 $9 $3,060 2 440 $10 $4,400 3 380 $11…

Q: The following information for Quadrado Corporation relates to the three-month period ending…

A: Formula: Gross profit = Sales - cost of goods sold

Q: Karen Company repoted the following information for the current year: Beginning inventory…

A: 1) Calculation of Cost of goods available for sale   Particulars P P       Beginning…

Q: Citizens Inc. took a physical inventory at the end of the year and determined that $650,000 of goods…

A: Goods in transit and good in consignment both are considered as part of the inventory. hence both…

Q: An organization has an inventory order quantity of 20,000 units and a safety stock of 4,000 units.…

A: Solution: Annual inventory carrying cost = Average inventory level * Carrying cost per unit per year…

Q: On December 31, 2010, what is the estimated cost of missing inventory?

A: Net sales = Sales - sales discount - sales return = $3,400,000 -  20,000 - 30,000 = $3,350,000 Cost…

Q: Anthony Corporation reported the following amounts for the year:           Net sales $ 296,000…

A: Inventory turnover = Cost of goods sold / Average inventory = $138,000/50000 = 2.76

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.