Top Corp uses LIFO accounting for inventory. Top begins the first quarter of 2020 with 800 units with a cost $60 each. During the first quarter of 2020, Top purchases 300 units at $70 each and sells 400 units at $130 each.   At March 31, 2018, replacement cost for inventory is $90 a unit. Top expects to replace  all 400 units that it sold by end of 2020. Using the integral method, what is the amount of Cost of Goods Sold recorded by Top for the quarter ended March 31,2020        a. $24,000   b. $28,000   c. $21,000   d. $30,000   e. $52,000

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: Hammond Company adopted LIFO when it was formed on January 1, 2017. Since then, the company has had…

A: LIFO liquidation seems to be the process of selling older items or material in a firm's stock at a…

Q: Ava Inc. had the following transactions on its inventory during 2021. Ava uses perpetual inventory…

A: The question is based on the concept of Cost Accounting. Perpetual moving average is one of the…

Q: Zeller Company sells gadgets and uses the perpetual inventory system. During the month of January…

A: Inventory Valuation Methods are used to determine the cost of goods sold and the cost of ending…

Q: Alfa INC began January 2021 with 20 units of iron inventory that cost 15 euro each. During January,…

A: In FIFO method , The inventory bought first are sold first. In LIFO method , the inventory bought…

Q: Beta Company uses a periodic inventory system. Details for the inventory account for the month of…

A: LIFO method: Last-in, first-out method is one of the inventory valuation methods that assume the…

Q: The records of Rami co. show the following data in June 30, 2020 Date Explanation Unit Unit Cost…

A: Inventory valuation is a method used by the organisation to evaluate the total value of goods held…

Q: Required: 1. Calculate the number and total cost of the units available for sale during 2020. 2.…

A: Solution:- Given, Synergy Company began 2020 with 23,500 units of Product X in its inventory that…

Q: The SG Company has a branch in Bohol. During 2020, the home office shipped to the branch merchandise…

A: Inventory means the amount of stock which is held for used in production or for resale purpose.…

Q: The records of Rami co. show the following data in June 30, 2020, During the month inventory on hand…

A: The cost of goods sold is the total cost that is contributes in the selling of the product.

Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…

A: Cost of goods sold (LIFO) = 8000 units purchased for $40 per unit + 1500 units from beginning…

Q: Brambie Corp. has 240000 of ending finished goods inventory as of December 31, 2019. If beginning…

A: Cost of goods manufactured is the total cost incurred to produce the products and transfer them into…

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: Causwell Company began 2021 with 10,000 units of inventory on hand. The cost of each unit was $5.00.…

A: The answer is as fallows

Q: Samuelson and Messenger (SAM) began 2021 with 200 units of its one product. These units were…

A: FIFO method and Average method are two method of inventory valuation. FIFO is first in first out…

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: The following are information about purchases and sales for main product of AMEER Inc. for year…

A: Weighted average cost = cost of all the units / number of units

Q: Muscat Company uses the periodic .24 inventory system to account for inventories. Information…

A: Total units available for sale = Beginning inventory + Purchase on 1/15/2020 + Purchase on 1/28/2020…

Q: Muscat Company uses the periodic inventory system to account for inventories. Information related to…

A: Units sold=Opening units+Purchase-Ending units=200+100+100-120=280 units

Q: On May 1, 2022, Heineken Company had beginning inventory consisting of 300 units with a unit cost of…

A: Lets understand the basics. For calculating average cost per unit, we will need to use below…

Q: and has the following inventory transactions for the half year ending 31 December 2020:   Units…

A: Weighted average method   Under this method average rate is calculated to value the inventory.…

Q: Muscat Company uses the periodic inventory system to account for inventories. Information related to…

A: Under FIFO periodic system of accounting for Inventory, Inventory purchased first is issued first…

Q: Bramble Company uses a periodic inventory system. Details for the inventory account for the month of…

A: Under FIFO method of inventory valuation , units which were purchased firsts are sold first ,…

Q: During 2020, Fresh Express Company sold 2,410 units of Its product on September 20 and 2,550 units…

A: Inventory Valuation - Inventory Valuation Methods are methods of valuation of inventory. There are…

Q: Al Wardi marketing company purchases mobiles directly from manufacturers and sells it to small…

A: Lets understand each method here. In First In First Out(FIFO) method company assumes that, goods…

Q: Muscat Company uses the periodic inventory system to account for inventories. Information related to…

A: FIFO METHOD It is an accounting method for valuation of assets. Under FIFO method , inventory of…

Q: A rain coat manufacturing company uses the periodic method and reported the following amounts for…

A: Cost of sales means for how much cost or value of goods has been sold by the business. It includes…

Q: pany had the following transactions: Beginning inventory, 200 at P5 per unit; purchased on January…

A: Solution: Introduction: Inventory Valuation Methods are generally used to determine the Cost of…

Q: The Reuschel Company began 2018 with inventory of 10,000 units at a cost of $7 per unit. During…

A: Requirement 1: The cost of goods sold under LIFO:

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

A: The Numerical has covered the concept of First in First out method and Weighted Average Method of…

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: amuelson and Messenger (SAM) began 2021 with 200 units of its one product. These units were…

A: FIFO is the inventory valuation method in which inventories purchased first will be sold first.…

Q: Also  prepare journal entries to record he December 20 purchase and the December  29 sales using…

A: The perpetual inventory method and periodic inventory method are the methods used to count the…

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: Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first…

A: Cost Sales value Beginning 64500 123000 Purchases 315000 483000 Total 379500 606000…

Q: Causwell Company began 2021 with 10,000 units of inventory on hand. The cost of each unit was $5.00.…

A: LIFO  means last in first out.  Here the goods which come last are issued first. So in rising prices…

Q: On January 2020, Tony Corporation has the following inventory purchases: January 2 Bought 5,750…

A: Inventory costing methods are those methods which are used for valuation and costing of inventory.…

Q: The Reuschel Company began 2021 with inventory of 11,000 units at a cost of $6 per unit. During…

A: LIFO Method: Last in first out method is the an inventory valuation method where inventory which get…

Q: The following is a record of Pervis Ellison Company's transactions for Boston Teapots for the month…

A: a. Assuming that perpetual inventories are not maintained and that a physical count at the end of…

Q: Swifty Corporation has $18000 of ending finished goods inventory as of December 31, 2019. If…

A: Cost of goods manufactured is the total cost incurred to produce the products and transfer them into…

Q: Luke's Lamps had a beginning inventory January 1, 2020 of $970,000.  They sold goods that cost…

A: Cost of goods sold is calculated by adding beginning inventory and purchases and deducting ending…

Q: The records of Rami co. show the following data on June 30, 2020, During the month inventory on hand…

A: Definition: First-in-First-Out (FIFO): In the First-in-First-Out method, the first purchased items…

Q: Sheffield Corp. uses a periodic inventory system. Details for the inventory account for the month of…

A: The units sold are calculated as difference between total units available for sale and Inventory…

Q: Causwell Company began 2018 with 10,000 units of inventory on hand. The cost of each unit was $5.00.…

A: 1.

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: In 2021, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2020…

A: Computation of Change in Inventory Value Particular FIFO LIFO Opening Inventory $ 137,000 $…

Q: Muscat Company uses the periodic inventory system to account for inventories. Information related to…

A: Periodic Inventory System:- This is the inventory system where entries get updated on a periodic…

Q: The following are information about purchases and sales for main product of AMEER Inc. for year…

A: What is the Weighted Average Costing Method? When using the weighted average method, divide the cost…

Q: Riverside Inc. began business on January 1, 2020. The firm made the following inventory purchases…

A: FIFO and LIFO are the assumptions used to calculate the amount of cost of goods sold and ending…

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.