A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 250 units. Ending inventory at January 31 totals 130 units.     Units Unit Cost Beginning inventory on January 1 230 $ 2.00   Purchase on January 9 50   2.20   Purchase on January 25 100   2.34     Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending  inventory when costs are assigned based on LIFO       Perpetual LIFO:   Goods purchased Cost of Goods Sold Inventory Balance Date # of units   Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1                             January 9                                                                                 $0   January 25                                                                                                                 January 26                                                                                   Totals

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Under LIFO, the newer goods are sold first, and older are left in the business.

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Ending Inventory = Total Cost of goods - Cost of goods sold

Q: Metlock Company uses a periodic inventory system. For April, when the company sold 650 units, the…

A: LIFO: Last-In First Out:- As per LIFO method, units purchased last are sold first.  Hence, April 23…

Q: A company reports the following beginning inventory and 2 purchases for the month of January. On…

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

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

A: Last in first out means that cost of goods sold consist of latest purchase and closing stock consist…

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

A: Under LIFO method, using perpetual inventory system, Cost of goods sold and value of ending…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: Perpetual Inventory System: There is a  continual track of  inventory balances under perpetual…

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

A: Let's understand some basics Ending Inventory is the goods which are purchased but no yet sold at…

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

A: The first-in, first-out (FIFO) strategy for stock valuation is a cost stream supposition that the…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: FIFO is the inventory method which says that inventory which is purchased first will be sold first.…

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

A: Under periodic inventory system, no record is made at regular intervals for purchase and sale of…

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

A: Companies do not follow up for the cost of each item of the inventory, so when these inventories are…

Q: The units of an item available for sale during the year were as follows: January 10 January 15…

A: FIFO is First in first out method of inventory valuation method in which inventories purchased first…

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

A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…

Q: The following information is available for Motta Company: Beginning inventory 200 units at $8 First…

A: Formula: Average cost per unit = Total cost of goods available for sale / Total no. of units…

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

A: Hence, COGS is $111,000. It is obtained by addition of sales made on March 14 and August 31 Here,…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: Solution: Cost assigned to ending inventory under LIFO is as under using below table:

Q: The following information is available for Pintus Company: Item Units Unit cost Total Beginning…

A: Average cost method is the method to value the cost of inventory. It is calculated by dividing total…

Q: Lee Ltd. has the following units and costs for the month of April. Beginning inventory, April 1,…

A: Periodic inventory method: It is a inventory valuation method. In this method inventory account is…

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Ending Inventory = Total Cost of goods - Cost of goods sold

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: Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the…

A:

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

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

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

A: Under weighted average cost method using periodic inventory system, value of ending inventory and…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: LIFO  Last-in First Out: Under LIFO inventory accounting, units purchased last are sold first.

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

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

Q: Aircard Corporation tracks the number of units purchased and sold throughout each accounting period…

A: Calculation of weighted average cost per unit : Date  Particulars  Calculation  Cost per unit…

Q: A company reports the following beginning inventory and 2 purchases for the month of January. On…

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

Q: The following information is taken from the inventory records of the CNB Company for the month of…

A: As per periodic inventory system, inventory records are not updated every transaction, they are…

Q: A company reports the following beginning inventory and 2 purchases for the month of January. On…

A: Particulars No. of Units Cost per unit Total Value Beginning Inventory 320 $10 $3,200…

Q: A company uses the periodic inventory system and had the following activity during the current…

A: Particulars No. of Units Cost per unit Total Value Beginning Inventory 100 $20 $2000…

Q: Blossom Company uses a periodic inventory system. For April, when the company sold 550 units, the…

A:

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Meaning of First In First Out :-  First In, First Out, also known as FIFO, is a method for valuation…

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

A: Since Morgenstern uses a perpetual inventory system, we shall prepare the inventory schedule showing…

Q: Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the…

A: First in first out is a method of accounting of inventory in which the stock purchased first is…

Q: Calculate Cost of Goods Sold under FIFO, LIFO, and Weighted Average.

A: FIFO is the inventory valuation method in which inventories which are coming first in business will…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: Goods Purchased     No. of Units Cost per Unit Jan 1 390 3.8 Jan 9 90` 4 Jan 25 120…

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

A:

Q: Undew Inc's inventory records showed the following data for an item it sells regularly. Date Units…

A:

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: Weighted Average cost method is a method of pricing of inventory. Under average cost method the…

Q: In its first month of operations, Bramble Corp. made three purchases of merchandise in the following…

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

Q: Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a…

A: Introduction: LIFO: LIFO stands for Last in First Out which means Last received inventory to be sold…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: No. of Units Cost per unit Jan 1 250 2.30 Jan 9 60 2.50 Jan 25 100 2.64

Q: Aircard Corporation tracks the number of units purchased and sold throughout each accounting period…

A: Beginning inventory=Units×Per units=2000×$25=$50,000

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: Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the…

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

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.