IFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 9,200 units at $150 Sale 5,400 units at $250 First purchase 12,800 units at $155 Sale 10,400 units at $250 Second purchase 14,100 units at $162 Sale 12,600 units at $250 The firm uses the perpetual inventory system, and there are 7,700 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of the ending inventory according to LIFO?

Q: The following units of an inventory item were available for sale during the year: Beginning…

A: FIFO (First-in First Out): Under FIFO inventory accounting, units purchased first are the units to…

Q: The following units of an inventory item were available for sale during the year: Beginning…

A: Ending inventory is the amount of inventory in hand at the end of the period. It is the amount which…

Q: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available…

A: FIFO METHODFIFO cost method assumes that units of inventory which are first bought are sold first,…

Q: FIFO and LIFO costs under perpetual inventory system The following units of an item were available…

A: A perpetual inventory system is a method of tracking and recording inventory transactions in…

Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory 7…

A: In case of LIFO units sold are from purchases made recently, therefore units in ending inventory…

Q: Sales during the year were 980 units. Beginning Inventory was 320 units at a cost of $3 per unit.…

A: The question is based on the concept of Cost Accounting. The valuation of the inventory and cost of…

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: FIFO and LIFO costs under perpetual inventory system The following units of an item were available…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory 7…

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

Q: a. What is the total cost of the ending inventory according to FIFO? 1,496,400 b. What is the total…

A: Inventory is recorded on the balance sheet and thus, it is required to determine the value of…

Q: The following units of an inventory item were available for sale during the year: Beginning…

A: LIFO = Last In First Out Under the LIFO method, the latest purchases are sold first and the initial…

Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory 8…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available…

A: First-in First-Out Method - Under the First-in First-Out Method company uses inventory in the…

Q: The following units of an inventory item were available for sale during the year: Beginning…

A: Total units are 68  Out of which units sold are 50 given  Hence 18 are closing inventory  LIFO…

Q: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available…

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

Q: The following units of an item were available for sale during the year: Beginning inventory 45…

A: a. Compute the total cost of the ending inventory according to FIFO.

Q: Gavin Products uses a perpetual inventory system. For Year 1 and Year 2, Gavin has the following…

A: Solution:-The task requires you to calculate Gavin Products' gross profit ratio and inventory…

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: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available…

A: First-in First-Out Method - Under the First-in First-Out Method company uses inventory in the…

Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory 7…

A: Under the LIFO method, the cost of the goods sold includes the latest purchases the ending inventory…

Q: FIFO and LIFO costs under perpetual inventory system The following units of an item were available…

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

Q: Using FIFO (a) Compute the cost of ending inventory. (b) Compute the cost of goods sold for the…

A:

Q: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available…

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

Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory 7…

A: Given,

Q: Haynes Company uses the perpetual inventory system. The following information is available for the…

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

Q: Sales during the year were 700 units. Beginning Inventory was 400 units at a cost of $10 per unit.…

A: FIFO method uses the inventory which is bought first for the production, but whereas the LIFO method…

Q: FIFO and LIFO costs under perpetual inventory system The following units of an item were available…

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

Q: The following units of an item were available for sale during the year: Beginning inventory 22 units…

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

Q: Weighted average cost flow method under perptual inventory system.  The following units of a…

A: Weighted average cost flow method: Under average cost method, company calculates a new average after…

Q: am. 106.

A: a. FIFO-Perpetual: First-purchased merchandise is sold first in the FIFO method, and transactions…

Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory 10…

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

Q: determine the cost of goods sold and compute the ending inventory as of Jan. 31 and make the journal…

A: LIFO inventory method is Last in first out which says that inventory purchased last will be sold…

Q: The following units of an inventory item were available for sale during the year. Beginning…

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

Q: The following units of an item were available for sale during the year: Beginning inventory 35 units…

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

Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory First…

A: LIFO- (Last in First Out): Under LIFO inventory accounting, units purchased last are the units to be…

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

A: The first in first out method is an inventory valuation method according to which the first…

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

A: FIFO means first in first out which means that inventory which is recieved first , will be sold…

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

A: Inventory valuation is referred to as that method which helps in assigning a monetary value to the…

Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory 10…

A: FIFO Method :— It is one of the method of inventory valuation in which it is assumed that old…

Q: The following units of an item were available for sale during the year: Beginning inventory 21 units…

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

Q: and LIFO costs under perpetual inventory system The following units of an item were available for…

A: calculation of ending inventory under LIFO and FIFO method

Q: FIFO and LIFO costs under perpetual inventory system The following units of an item were available…

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

Q: Phillips Company had the following information for the year ending December 31: Units Unit Cost…

A: LIFO (Last in first out): It is an Inventory valuation technique in which the last received stock of…

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.