Vaughn Company's inventory records show the following data: Units Unit Cost Inventory, January 1 10200 $9.20 Purchases: June 18 9500 9.00 November 8 6400 5.00 A physical inventory on December 31 shows 4100 units on hand. Vaughn sells the units for $15 each. The company has an effective tax rate of 20%. Vaughn uses the periodic inventory method. What is the difference in taxes if LIFO rather than FIFO is used? $2470 additional taxes $2676 tax savings $3444 additional taxes $2676 additional taxes

Q: stle Company uses the periodic inventory system. For January 2020, the entory consisted of 36,000…

A: 1)   Option "a" is the correct answer.   Average Cost = (36000×12+15000×15+60000×13.5)111000 units…

Q: Hobbes antiques has 4 lion statues in its inventory, purchased at the following prices in the…

A: Calculation of gross profit for December are as follows:

Q: On April 1 2021, Slay Company had 6,000 units of merchandise on hand that cost P120 per unit. During…

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

Q: Givenchy Inc. sells electric stoves. It uses the perpetual inventory system and allocates cost to…

A: Using FIFO method, goods that are purchased first are to be sold first and goods purchased at last…

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: Steven Company uses a perpetual inventory system.  It sells its product to customers for $60 per…

A: Computation Of Value of Inventory as per FIFO Method Date Particulars  Units  Rate($) Amount ($)…

Q: XYZ Co uses the periodic inventory system to account for inventories. Its beginning inventory  is…

A:

Q: Coronado Industries had the following inventory transactions occur during 2014: Units ==!T Cost/unit…

A: After tax income =Net sales - Cost of goods sold - tax expense

Q: Seven Sea Corporation sells Ovens for an average of OMR 50, and which cost OMR 25. This is a…

A: The ending inventory is the inventory left with the business at year end.

Q: Monte Vista uses the perpetual inventory system. At the beginning of the quarter, Monte Vista has…

A: Formula: Cost of goods sold = Beginning Inventory + Purchases - purchase returns - Purchase discount…

Q: The following information is available for Orset, a sole trader who does not keep full accounting…

A: We have the following information: Inventory on 1st July 20X4: $138,600 Inventory on 30th June…

Q: Mariah Company has inventory at the end of the year with a historical cost of $88,000, Mariah…

A: Journal entry is a record of financial transaction in the books of accounts by an organization. It…

Q: Green Company has beginning inventory of 20 units at a cost of $12.00 each on May 1. On May 5, it…

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

Q: Waterway Company's inventory records show the following data: Units Unit Cost 10200 Inventory,…

A: The direct cost associated with the production of a product constitutes the cost of goods sold in…

Q: Swifty Company's inventory records show the following data: Units Unit Cost Inventory, January 1…

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

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: John had 150 units in inventory costing $5,700 on December 1st, 2020. During the month of December,…

A: Weighted average unit price on Dec. 18, 2020 = (Cost of beginning inventory + Cost of Purchase) /…

Q: Determine the carrying value of SLR’s inventory assuming that the lower of cost or net realizable…

A:

Q: Seven Sea Corporation sells Ovens for an average of OMR 50, and which cost OMR 25. This is a…

A: This method is generally used by retailers to estimate ending inventory.   Under this method…

Q: ompkins Company reports the following inventory record for November:   INVENTORY Date Activity #…

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

Q: Pear Company recorded the following data pertaining to one of its inventory items during January…

A: Moving average cost is a method of inventory valuation. This method computes the unit cost every…

Q: Eneri Company's inventory records show the following data:         Units   Unit Cost Inventory…

A: A cost sheet is a statement that is prepared with a view to show the different components of costs…

Q: The Holden Corp. company has the following purchases an during the year ended December 31, 2014.…

A: Valuation method : FIFO Calculation of Cost of Goods Sold. Feb 9 : 30 units sold = 30 units x Cost…

Q: Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product…

A:

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: Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product…

A: The Numerical has covered the concept of the FIFO method. The Key Point of the Fifo method is First…

Q: -S The Stilton Company has the following inventory and credit purchases during the fiscal year ended…

A: FIFO Method :— It is one of the method of inventory valuation in which beginning Inventory and first…

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

A: Fifo is first in first out method of inventory costing which says that inventory which is purchased…

Q: The Stilton Company has the following inventory and credit purchases during the fiscal year ended…

A: given that, goods available for sale = 640 + 350 + 230 = 1220 units  number of units sold = 430 +…

Q: XYZ Company Began the year 2020 with 600 units of products in its January 1 Inventory costing BD35…

A: Date Description units cost per unit Total Cost 1Jan Opening Inventory 600 35 600*35=2100 4Jan…

Q: SOVEREIGN Industries' inventory during the year is given below. The company uses a periodic…

A: Total units sold = 4200 + 2000 + 2500 + 3000 + 1000 - 400 = 12300 units   In the FIFO method, units…

Q: Forester Company has five products in its inventory. Information about the December 31, 2021,…

A: Normally the inventory is valued  at costs but if the selling price drops down  below costs ,as…

Q: Assuming that the company uses the perpetual inventory system, determine the gross profit for the…

A: Perpetual inventory system:   In this system the inventory is recorded on a regular basis. The…

Q: The following is the detail of the purchase and sale of inventory of a product of Simco Co. May 1…

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

Q: During 2021, a company sells 280 units of inventory for $89 each. The company has the following…

A: Under FIFO the earliest  goods will be sold first

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

A: Cost of goods sold method is that the expense which incurred directly for the creation of products.…

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

A: Gross profit is the difference between sales & Cost of goods sold. Gross profit = Sales - Cost…

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: HOW MUCH IN TAXES WILL ABC SAVE IN THE CURRENT YEAR IF THEY CHOOSE TO USE LIFO INSTEAD OF FIFO?

A: Under FIFO Method, units which comes in first will be sold first and the ending inventory will be…

Q: At the end of December 2020, the accounting records of XYZ firm present the following transactions…

A: The question is based on the concept of Cost Accounting.

Q: Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product…

A: FIFO adopts the assumption that the inventory that is purchased first would be sold first.

Q: Denise’s Boutique uses the perpetual inventory method for its wristlet purses. It has provided the…

A: INTRODUCTION PERPETUAL INVENTORY SYSTEM Perpetual inventory system is the method of recording…

Q: Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for…

A: Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for…

Q: Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product…

A: FIFO:- The term FIFO is referred as First in First out inventory valuation method under which the…

Q: The Boxwood Company sells blankets for $40 each. The following was taken from the inventory records…

A: Inventory valuation is based on the flow of assumptions.As per the FIFO method, those units are…

Q: The Boxwood Company sells blankets for $ 38.00 each. The following was taken from the inventory…

A: Using FIFO method, old goods are sold first and newer goods are sold later.

Q: Forester Company has five products in its inventory. Information about the December 31, 2021,…

A: lower of cost or market (LCM) rule for inventory valuation considers the market value of inventory…

Q: Cheyenne Corp. had the following inventory transactions occur during 2022:         Units…

A: Under LIFO method, newer units are sold first and old units are sold later.

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.