Crane Company uses a periodic inventory system. For April, when the company sold 400 units, the following information is available.     Units   Unit Cost   Total Cost April 1 inventory   220   $11     $ 2,420   April 15 purchase   450   13     5,850   April 23 purchase   330   14     4,620       1,000         $12,890   Compute the April 30 inventory and the April cost of goods sold using the FIFO method. Ending inventory     Cost of goods sold

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

A: FIFO Method assumes that goods purchased first are sold first which means closing stock will…

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Inventory valuation method includes: FIFO method LIFO method Weighted average cost method FIFO…

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: Compute the April 30 inventory and the April cost of goods sold using the average-cost method.…

A: The periodic inventory system is a method of inventory valuation for financial reporting purposes in…

Q: Nevens Company uses a periodic inventory system. During November, the following transactions…

A: The cost of things on board at the end of a reporting period is referred to as ending inventory. The…

Q: Bonita Co. uses a periodic inventory system. Its records show the following for the month of May, in…

A: Ending inventory is the amount of inventory that an entity has in hand, at the end of the period.…

Q: Carla Vista Inc. uses a periodic inventory system. Its records show the following for the month of…

A: Under the FIFO method, the oldest products in inventory are sold first.Under the LIFO method, the…

Q: The Pins Shop shows the following data related to an item of inventory. SHOW ALL COMPUTATION FOR…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: Crane Company uses a periodic inventory system and reports the following for the month of June. Date…

A: FIFO: "First-In, First-Out" - Items purchased or produced first are sold or used first.LIFO:…

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

A: Periodic Inventory System:  Periodic inventory system is a system, in which the inventory is updated…

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

A: It is an inventory valuation approach. The cost of goods sold and ending inventory are also…

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: 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: Blue Company uses a periodic inventory system. For April, when the company sold 500 units, the…

A: Under periodic inventory system, the goods are not recorded with every sale or purchase. Under LIFO…

Q: Lisa Company reports the following for the month of June. Date Explanation Units Unit Cost Total…

A: Perpetual FIFO:                     Goods Purchased Cost of Goods Sold Ending Inventory Date…

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

A: Ending Inventory is valued at cost or net realizable value. To value ending inventory at cost, there…

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

A: Lets understand the basics.Ending inventory and cost of goods sold can be calculated using,(1)…

Q: Teal Mountain Inc. uses a periodic inventory system. Its records show the following for the month of…

A: The ending inventory includes the number of units that are left in stock at the end of period. Using…

Q: Novak Company uses a periodic inventory system. For April, when the company sold 450 units, the…

A: To compute: Weighted-average cost per unit = Total cost / Total units available for sale…

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

A: Introduction: LIFO: LIFO stands for last in first out. Which means last received inventory to be…

Q: Wildhorse Company uses a periodic inventory system and reports the following for the month of June.…

A: Step 1:Cost of ending Inventory and Cost of goods sold under FIFO, LIFO, and  Average-cost. In the…

Q: Ayayai Ltd., which uses a perpetual inventory system, recorded the following inventory transactions…

A: Under FIFO method using perpetual inventory system, Value of ending inventory and cost of goods sold…

Q: Upland Co.'s inventory records showed the following data accounted for in a perpetual inventory…

A: First in First out, this method assumes that the inventory purchased first is sold first and…

Q: Kassim Baba Company's inventory records show the following data for the month of September: Units…

A: Solution...     Units available  = 100 + 450 + 350  = 900  Units in hands = 200. Units sold  = Units…

Q: Maxell Company uses the FIFO method to assign costs to inventory and cost of goods sold. The company…

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

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

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Q: Ivanhoe Company uses a periodic inventory system and reports the following for the month of June.…

A: 1. FIFO (First-In, First-Out): This method assumes that the oldest inventory is used or sold first,…

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Under the FIFO method, the oldest products in inventory are sold first.Under the LIFO method, the…

Q: Salmone Company reported the following purchases and sales of its only product. Salmone uses a…

A: Those units are sold first which have been purchased first.

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

A: Inventory Valuation under FIFO:"FIFO" stands for first-in, first-out, meaning that the oldest…

Q: A company reports the pilowing beginning 450 units. Ending inventory at January 31 totals 170 units.…

A: LIFO - Last in first out means that the units purchased latest will be sold first , therefore the…

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

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

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

A: To ascertain the weighted average cost per unit the Cost of goods available for sale are divided by…

Q: Pharoah Company uses a periodic inventory system and reports the following for the month of June.…

A: 1. FIFO (First-In, First-Out): This method assumes that the oldest inventory is used or sold first,…

Q: Aztec Corporation uses a periodic inventory system and the retail inventory method to estimate…

A: "Net purchases at retail" is a term used in the retail industry to describe the cost of merchandise…

Q: Crane Company uses a periodic inventory system. For April, when the company sold 400 units, the…

A: As per FIFO method, goods purchased first will be sold first which means ending inventory should be…

Q: Hess Company's inventory records show the following data for the month of September:       Units…

A: Cost of goods sold=Cost of goods available-Ending inventory

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.