A company's inventory records report the following: August 1: Beginning balance 18 units @ $8...
Question:
A company's inventory records report the following:
August 1: Beginning balance 18 units @ $8
August 5: Purchase 13 units @ $7
August 12: Purchase 17 units @ $8
On August 15, it sold 36 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale?
Inventories:
Inventories are valued at the lower of cost and net realizable value. AT the time of purchase, purchases made and recorded through the perpetual inventory system are recorded as inventories.
Answer and Explanation: 1
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View this answer| Beginning Inventory | 18 |
| Purchases (13+17) | 30 |
| Units Sold | -36 |
| Ending Inventory | 12 |
| August 12 Purchases-Ending Inventory | 12 |
| Cost | 8 |
| Cost of Ending Inventory | 96 |
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Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
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Chapter 6 / Lesson 11
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Inventory valuation methods are ways that companies place a monetary value on the items they have in their inventory. Discover different inventory valuation methods, including specific identification, First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and weighted average.
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