By following the LIFO process calculate the Ending inventory value.
Q: How do I use FIFO and calculate the Cost of Goods and inventory ?
A: FIFO Method: FIFO method also referred to as First-In-First-Out method is an inventory management…
Q: Valuing Inventory and Recording Entries Using Relative Sales Value Method
A: Inventory valuation is very important and is generally done at the end of the accounting year. The…
Q: Refer to the information in Exercise 6-7 and assume the periodic inventory system is used. Determine…
A: Introduction: FIFO: FIFO stands for First in First out Which is used in valuating inventory.
Q: What is the ending inventory value for May?
A: Average cost method: The average cost method is a cost valuation method used for the valuation of…
Q: Describe the alternative approaches for recording inventory write-downs.
A: Inventory write-down: As per GAAP (Generally Accepted Accounting Principles), the companies are…
Q: a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of…
A: Ending inventory is computed by adding the beginning inventory and purchases and then subtracting…
Q: Required: Compute the inventory cost using a. Moving average method b. FIFO method
A: There are several methods of inventory costing and inventory valuation like FIFO, LIFO , average…
Q: How to determine the inventory cost using the fifo and lifo
A: Inventory cost is the cost to incur handling charges,maintaining cost and storage cost with…
Q: What is inventory shrinkage? Describe the adjusting entry that would be recorded to account for…
A: Inventory shrinkage: When there is a difference between inventory as per books and actual inventory…
Q: Determine the costs assigned to ending inventory and to cost of goods sold using LIFO
A: FIFO FIFO stands for “First-In, First-Out”. It is a method used for cost flow assumption purposes in…
Q: Define beginning inventory and ending inventory
A: The beginning inventory and ending inventory are explained as below, The Inventory can be defined…
Q: Under periodic inventory system, when there is purchase return then: Inventory will be debited…
A: Answer A periodic inventory system only updates the closing inventory balance in the general ledger…
Q: Give examples of costs included in annual carrying costs of inventory when using the EOQ decision…
A:
Q: Determine the goods and costs included in inventory.
A: The cost included in inventory includes all the costs incurred to prepare such inventory for sale.…
Q: Determine the ending inventory under a perpetual inventory system using Moving Average and LIFO…
A: Inventory valuation refers to the valuation of inventories using the valuation methods such as FIFO…
Q: What is meant by the term gross margin? Describe costing inventory using first-in, first-out.…
A: What is meant by the term gross margin?
Q: Compute for the cost of ending inventory and cost of goods sold using: a. FIFO - periodic b.…
A: The following computations are done for Extreme Company.
Q: Required: Hemming uses a perpetual inventory system. 2. Determine the costs assigned to ending…
A: LIFO is the inventory valuation method in which inventories purchased at last will be sold first in…
Q: a. What value should be assigned to the ending inventory using FIFO? b. What value should be…
A: FIFO method: Under this method of inventory valuation, it is assumed that item of inventory…
Q: Which inventory method is being used when the natural flow of goods is followed? a.) Specific ID b.)…
A: Inventory Valuation: - This is defined as the valuation wherein the changes between the value of the…
Q: When using the periodic inventory system, which inventory costing method(s) always produces the same…
A: Under the periodic inventory system. the inventory is counted usually at the end of the period and…
Q: Explain how a periodic inventory system operates.
A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…
Q: The inventory costing method that reports the most current prices in ending inventory is Oa. average…
A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…
Q: Compute the cost of the ending inventory and the cost of goods sold under FIFO LIFO • average-cost…
A:
Q: Determine ending inventory by applying the retail inventory method.
A: Retail inventory method: It takes into account all the retail amounts that is, the current selling…
Q: Required: Compute the ending inventory cost using a. Moving average method b. FIFO method
A: The inventory can be valued using various method as LIFO, FIFO and average method.
Q: 1. Calculate the value of closing inventory using the Weighted average cost inventory valuation…
A: As per weighted average cost inventory valuation method, cost per unit is calculated by dividing the…
Q: what is the amount allocated to ending inventory on a LIFO basis?
A: Using the LIFO method, the last purchased units are sold first. Periodic inventory records inventory…
Q: Need to know how to get ending inventory for JAFFE on a corrected income statement for NPV
A: This question is related to the ending inventory before moving into the question first we know about…
Q: Using the LIFO method, calculate the cost of ending inventory and cost of goods sold for Cambell…
A: The question is based on the Concept of Cost Accounting.
Q: Explain an example how to calculate inventory turnover ratio.
A: Inventory turnover ratio : Inventory turnover is used to find how many times a company sold its…
Q: Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?
A: FIFO: Under this method, ending inventory is valued at the latest price and Merchandise sold are…
Q: Compute the correct amount of inventory.
A: Inventory is the stock which the company has in order to sell them in the normal course of the…
Q: I need number 2. Determine the costs assigned to ending inventory and to cost of goods sold using…
A: Step 1 Inventory management system is the process of managing the flow of inventory
Q: Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending…
A: Answer FIFO (First in first out) It is the method of recording inventory in which we assume that the…
Q: Give TWO examples of methods of inventory accounting. (With explanation)
A: Inventory accounting : Inventory accounting is a method used to ascertain the cost of inventory.…
Q: der the method, ending inventory is based on the costs of the most recent purchases. A. FIFO B.…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Use the information in the account records on the Inventory tab to calculate the total cost of…
A: FIFO means First In, First Out. That means the cost of ending inventory comprises of cost of…
Q: Describe the typical approach for recording inventory write-downs.
A: Inventory write-down: As per GAAP (Generally Accepted Accounting Principles), the companies need to…
Q: calculate the cost of ending inventory using the FIFO costing method:
A: Under the FIFO method of inventory costing it is assumed that the first goods purchased are also the…
Q: Given the following information calculate: A. The closing book inventory at cost: B. The gross cost…
A: Retail inventory method refers to an accounting method which is used by the companies to compute the…
Q: nding Inventory and Cost of goods sold using LIFO?
A:
Q: under the system the ending inventory and cost of goods sold are determined at the end of the…
A: Inventory in the business can be maintained through perpetual inventory system or periodic inventory…
Q: According to our authors, define “cost” as it relates to determining the value of inventory. Provide…
A: Value of inventory is the cost associated with the company's inventory at the end of a reporting…
Q: The costs of ending inventory is similar under both periodic and perpetual inventory system if…
A: The given question is related to inventory valuation. The first method of inventory valuation is the…
Q: nventory valuation is used to calculate the cost of goods sold and cost of ending inventory. The…
A: First in First out Method This is one of the popular method of inventory valuation. While using…
Q: Calculate the value of ding system. Ending inventory Cost of goods sold $ $
A: FIFO It is the method where we assume that the goods which were purchased earlier will be sold…
By following the LIFO process calculate the Ending inventory value.
Step by step
Solved in 2 steps with 1 images
- Firm A is a merchandiser selling small devices. At the beginning of October, it has 400 devices in the warehouse. Each cost is 2.5 dollars. On Oct.5th, the firm purchased 300 new devices with a price of 3 dollars each. On Oct.10th, the firm sold 500 devices. On Oct.15th, the firm purchased 400 new devices with a price of 3.5 dollars each. On Oct.20th, the firm sold 200 devices. On Oct.25th, the firm sold 300 devices. On Oct.15th, the firm purchased 250 new devices with a price of 4 dollars each. Please determine the cost of merchandise sold during October and how the calculation process.The following events occur during September: Webworks purchases supplies worth $120 on account. At the beginning of September, Webworks had 19 keyboards costing $100 each and 110 flash drives costing $10 each. Webworks has decided to use perpetual FIFO to cost its inventory. On account, Webworks purchases thirty keyboards for $105 each and fifty flash drives for $11 each. Webworks starts and completes five more Web sites and bills clients for $3,000. Webworks pays Nancy $500 for her work during the first three weeks of September. Webworks sells 40 keyboards for $6,000 and 120 flash drives for $2,400 cash. Webworks collects $2,500 in accounts receivable. Webworks pays off its salaries payable from August. Webworks pays off $5,500 of its accounts payable. Webworks pays off $5,000 of its outstanding note payable. Webworks pays Leon salary of $2,000. Webworks pays taxes of $795 in cash. Required: Prepare journal entries for the above events. Post the journal entries to T-accounts.…Patty Corp., a public company, delivers 3,200 units to a customer on 1 April for $80/unit. Patty Corp. has a return policy where they allow any customer to return any unused product within 45 days and receive a full refund. The cost of each product is $64. Based on historical experience Patty estimates that customer will return 2% of the units sold. Patty expects to be able to resell any returned goods. Assume that 50 products are returned on 2 May. No additional units are returned by 15 May (the end of the return period). Required: Prepare the journal entries related to the sale of products. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 Prepare the journal entry required on 1 April to record the sale: Note: Enter debits before credits. Date 1 April General Journal Debit Credit
- Edmund Supplies Company sold 3,170 metal connectors on account to Door Incorporated for $200 each on September 15. Each metal connector costs Edmund $150 to make. Door has 60 days to return the unused goods. Edmund believes that Door will ultimately return 75 of the connectors. On September 29, Door returns 50 connectors. Edmund has a September 30 fiscal year end. At year end, Edmund believes 75 connectors is a good estimate of the total that will be returned. The cost of recovering these products is immaterial. Edmund expects to be able to resell these goods for a profit. Instructions Prepare the following journal entries on the books of Edmund Company: Entries to record the initial sales on September 15. Entries to record the return of goods September 29. Entries to record the year-end adjustment based on estimated returns on September 30.One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began the last quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000. The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition, One Stop paid $120 cash on each clock to have the inventory shipped from the vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of these clocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, as they were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of $498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of $7,400 each…At the beginning of June there were 500 Widgets held in the stores. 200 of these Widgets had been purchased for £12.50 each in May and 300 had been purchased for £13 each in April.On 15th June a further 150 Widgets were received into stores at a purchase cost of £13.20 each.The only issue of Widgets in June occurred on the 25th, when 90 units were issued to production.Using the FIFO valuation method, what was the value of the opening inventory of Widgets on 1st July?a) £1,070b) £1,188c) £7,192d) £7,210
- One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began the last quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000. The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition, One Stop paid $120 cash on each clock to have the inventory shipped from the vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of these clocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, as they were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of $498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of $7,400 each…One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began the last quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000. The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition, One Stop paid $120 cash on each clock to have the inventory shipped from the vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of these clocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, as they were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of $498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of $7,400 each…One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began the last quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000. The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition, One Stop paid $120 cash on each clock to have the inventory shipped from the vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of these clocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, as they were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of $498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of $7,400 each…
- One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began the last quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000. The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition, One Stop paid $120 cash on each clock to have the inventory shipped from the vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of these clocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, as they were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of $498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of $7,400 each…One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began thelast quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000.The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition,One Stop paid $120 cash on each clock to have the inventory shipped fromthe vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of theseclocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, asthey were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of$498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of$7,400 each and these…One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began thelast quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000.The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition,One Stop paid $120 cash on each clock to have the inventory shipped fromthe vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of theseclocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, asthey were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of$498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of$7,400 each and these…