Assume the company maintains periodic inventory records. What is the cost of the ending inventory...
Question:
During June, the following changes in an inventory item took place:
| June | 1 | Balance | 300 units | $2 |
|---|---|---|---|---|
| 9 | Purchased | 480 units | $3 | |
| 20 | Purchased | 174 units | $4 | |
| 29 | Purchased | 121 units | $5 | |
| 8 | Sold | 195 units | $10 | |
| 10 | Sold | 500 units | $10 | |
| 21 | Sold | 80 units | $10 | |
| 26 | Sold | 65 units | $10 |
Assume the company maintains periodic inventory records. What is the cost of the ending inventory under the following methods?
a. FIFO
b. LIFO
c. Weighted-average (if necessary, round the unit cost to the nearest penny)
Inventory Valuation:
Inventory Valuation is a composed of different methods of measuring the inventories to be charged in the income statement and the balance sheet. These methods includes First-in, First-out Method, Weighted Average, and Last-in, First-out Method.
Answer and Explanation: 1
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View this answera) First-in, First-out Method (FIFO)
| Date | Transaction | Units | Cost per Unit | Total |
|---|---|---|---|---|
| June 1 | Balance | 300 units | $2 | $600 |
| June 9 | Purchase | 480 | 3 | 1,440 |
| June 20 | P... |
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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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