Eneri Company's inventory records show the following data: Units Unit Cost Inventory January 1...
Question:
Eneri Company's inventory records show the following data:
| Units | Unit Cost | ||
| Inventory | January 1 | 5,000 | $9.20 |
| Purchase | June 18 | 4,500 | $8.00 |
| Purchase | November 8 | 3,000 | $7.00 |
A physical inventory on December 31 shows 2,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. Under the FIFO method, the December 31 inventory is valued at:
a. $14,000.
b. $18,400.
c. $16,480.
d. $16,133.
Inventory Valuation:
In accounting, the proper valuation of inventory is necessary so that the balance sheet and the income statement are properly stated. This valuation can either be FIFO, LIFO, specific identification, etc.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerUnder FIFO, the ending inventories must be valued based on the recent purchased price. If 2,000 units are left as ending inventories, then, the value...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
FIFO Inventory Method of Finding Equivalent Units
from
Chapter 6 / Lesson 3
4.9K
The FIFO inventory method stands for First in First Out, where costs accrued first will be paid out before those acquired later. Learn how to identify equivalent units using this method, and how to develop a production cost report as well.
Related to this Question
- Eneri Company's inventory records show the following data: Date Units Unit Cost January 1, Inventory 10,000 $9.20 June 18, Purchase 9,000 $8 November 8, Purchase 5,000 $7 A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units
- Eneri Company's inventory records show the following data: Units Unit Cost Inventory January 1 5,000 $9.20 Purchase June 18 4,500 $8.00 Purchase November 8 3,000 $7.00. A physical inventory on Decembe
- Eneri Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $9.20 Purchases: June 18 4,500 8.00 November 8 3,000 7.00 A physical inventory on December 31 show
- Eneri Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $9.20 Purchases, June 18 4,500 8.00 November 8 3,000 7.00 A physical inventory on December 31 sho
- Eneri Company's inventory records show the following data: A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of
- Rudolf Diesel Company's inventory records show the following data: Inventory, January 1 5,000 units at $9.00 per unit Purchases: June 18 4,500 units at $8.00 per unit Purchases: November 8 2,000 units at $7.00 per unit A physical inventory on December 31
- Holliday Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $11.00 Purchases:June 18 4,500 9.00 November 8 3,000 3.00 A physical inventory on December 31 s
- Holliday Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $9.00 Purchases: June 18 4,500 8.00 November 8 3,000 7.00 A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for
- Holliday Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $9.00 Purchases: June 18 4,500 8.00 November 8 3,000 7.00 A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units fo
- Coronado Company's inventory records show the following data: Units Unit Cost Inventory, January 1 10,300 $9.40 Purchases: June 18 9,100 7.00 November 8 6,500 8.00 A physical inventory on December 31 shows 3600 units on hand. Coronado sells the units f
- W.B. Reindeer Company's inventory records show the following data: Units Unit Cost Inventory January 1 5,000 $9.00 Purchase June 18 4,500 $8.00 Purchase November 8 3,000 $7.00 A physical inventory on
- Tomasino's inventory records show the following data on January 31: Beginning inventory Jan. 1 90 units at $9 per unit Jan. 10 purchase 300 units at $11 per unit Jan. 22 purchase 90 units at $12 per unit On January 31, 210 units are still on hand. What is
- Esplanade Company was formed December 1, 2009. The following information is available from Esplanade's inventory records for Product BAP. January 1, 2010 (Beginning inventory): 600 units, unit cost $8.00 Purchases: January 5, 2010: 1100 units, unit cos
- Skysong Company was formed on December 1, 2016. The following information is available from Skysong's inventory records for Product BAP Units Unit Cost January 1, 2017 (beginning inventory) Purchase
- Holliday Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $9.50 Purchases: June 18 4,500 9.00 November 8 3,000 4.00 A physical inventory on December 31
- Thelen's inventory records show the following data at January 31: Beginning inventory Jan. 1 90 units at $5 per unit Jan. 10 purchase 270 units at $11 per unit Jan. 22 purchase 130 units at $12 per unit At January 31, 230 units are still on hand. What is
- The Notebook Company was formed on December 1, 2016. The following information is available from the company's inventory records: Units Unit Cost Balance as of May 1, 2017, 800 $104 Purchases: May 7, 2017 19,000 $105 June 11, 2017 17,000 $106 July 23, 201
- A company just starting business made the following four inventory purchases in May: May 1 - 130 units totaling $390; May 10 - 200 units totaling $650; May 15 -200 units totaling $700; and May 28 - 170 units totaling $680. A physical count of inventory o
- There are 16 units of the item in the physical inventory at December 31. The periodic inventory system is used. Jan 1:Inventory 9 units at $360 Feb 17: Purchase 18 units at $414 July 21: Purchase 21 units at $468 Nov. 23: Purchase 12 units at $495 a. De
- The inventory records of Thimble Company show the following: Mar 1 Beginning inventory consists of 10 units costing $80 per unit. Mar 3 Sold 5 units at $188 per unit. Mar 10 Purchased 16 units at $96 per unit. Mar 12 Sold 8 units at $192 per unit. Mar 20
- Zlad Company had a beginning inventory on January 1 of 150 units of product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made : Mar 15 - 400 units at $23 ; July 20
- Use the following information. Dec. 1 Beginning Inventory 70 units @ $28 Dec. 9 Purchases 30 units @ $32 Dec. 17 Sales 25 units Dec. 22 Purchases 15 units @ $36 Dec. 27 Sales 40 units Calculate
- On January 1, Hyper Inc. had a beginning inventory of 160 units of Product 4-18-19 at a cost of $20 per unit. During the year, the following purchases were made. | Mar. 15 | 400 units at $23 | Sept. 4 | 330 units at $26 | July 20 | 250 units at $24 | D
- During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows: Units Cost per unit Beginning Inventory 100 $15 Jan. 5, Sales 50 Jan. 10, Purchases 70 $13 Jan. 15, Sale 25 Jan. 25, Sale 35 Require
- Steel It began January with 55 units of iron inventory that cost $35 each. During January the company completed the following inventory transactions. Units Unit cost Unit Sales Price Units Jan.3 Sale
- Wildhorse Co. had a beginning inventory on January 1 of 308 units of Product 4-18-15 at a cost of $19 per unit. During the year, the following purchases were made. Mar. 15 820 units at $22 Sept. 4 718 units at $25 July 20 513 units at $23 Dec. 2 205 units
- Trans Co. uses the periodic inventory system. The following are inventory transactions for the month of January: Jan. 1 Beginning inventory 10, 000 units @ $3 5 Purchase 8, 000 units @ $4 15 Purchase 5, 000 units @ $6 20 Sales at $10 per unit 14, 000 unit
- Tablet Company, which uses a periodic inventory system, reports the following in its inventory records for June: Units Unit Cost Beginning Inventory 10 $12 Purchase #1 5 $10 Purchase #2 5 $14 During June, Tablet Company sold 12 units. Using the weighted
- Trans Co. uses the periodic inventory system. The following are inventory transactions for the month of January: Jan. 1 Beginning inventory 10, 000 units @ $3 5 Purchase 8, 000 units @ $4 15 Purchase 5, 000 units @ $6 20 Sales at $10 per unit 14, 000 uni
- A company just starting a business made the following four inventory purchases in May: May 1 - 130 units totaling $390; May 10 - 200 units totaling $650; May 15 -200 units totaling $700; and May 28 - 170 units totaling $680. A physical count of inventory
- AAA Co. uses a periodic inventory system and has the following information in regard to its inventory: Beginning inventory 500 units @ $17 $8,500 Purchase on January 25 600 units @ $18 $10,800 Purchase on March 15 500 units @ $19 $9,500 Purchase on Octobe
- 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
- Suppose Intel Corporation's inventory records for a particular computer chip indicate the following at October 31: Oct. 1 Beginning inventory 5 units @ $160 = $ 800 8 Purchase 4 units @ 160 = 640 15 Purchase 11 units @ 170 = 1,870 26 Purchase 5 units @ 18
- Keen Company's accounting records indicated the following information: Inventory, 1/1/14 $ 1,200,000 Purchases during 2014 6,000,000 Sales during 2014 7,600,000 A physical inventory was taken on December 31, 2014, resulted in an ending inventory of $1
- Given the following information, determine the cost of goods sold at December 31 using the LIFO periodic inventory method. December 2: 23 units were purchased at $8.80 per unit. December 9: 28 units were purchased at $11.20 per unit. December 11: 30 un
- Hyper Inc. had a beginning inventory on January 1 of 160 units of Product 4-18-19 at a cost of $20 per unit. During the year, the following purchases were made. | Mar. 15 | 400 units at $23 | Sept. 4 | 330 units at $26 | July 20 | 250 units at $24 | De
- Use the data given below. Beginning Inventory 50 units at $5 each Purchase 10 units at $6 each Sale 30 units at $15 each Purchase 10 units at $7 each Sale 25 units at $15 each Find the Cost of Goods Sold and Ending Inventory using the Weighted Average-Per
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 680 units @ $40 per unit Feb. 10 Purch
- AAA Co. uses a periodic inventory system and has the following information in regard to its inventory: Beginning inventory 350 units @ 14 $4,900 Purchase on January 25 450 units @ 15 6,750 Purchase o
- Digital Enterprises uses a perpetual inventory system and has the following data available from inventory, purchases, and sales for the month of January. Jan. 01: Beginning Inventory of 110 units at $4.83 Jan. 07: Purchase of 460 units at $5.33 Jan. 16: S
- The following data are available for Sellco for the fiscal year ended on January 31, 2011: Sales 1,600 units Beginning inventory 500 units @ $4 Purchases, in chronological order 600 units @ $5 800 units @ $6 400 units @ $8 Calculate cost of goods sold and
- The following data are available for Sellco for the fiscal year ended on January 31, 2014: Sales 3,200 units Beginning inventory 1,000 units @ $4 Purchases, In chronological order 1,200 units @ $5 1,600 units @ $6 800 units @ $8 Calculate cost of goods so
- On January 1, 2007, Nichols Company's inventory of Item X consisted of 2,000 units that cost $8 each. During 2007 the company purchased 5,000 units of Item X at $10, each, and it sold 4,500 units. Periodic inventory procedure is used. Cost of ending inven
- A company had the following purchases and sales during its first year of operations: On December 31, there were 26 units remaining in ending inventory. Using the Periodic LIFO in goods sold? (Assume a
- A company's inventory records report the following: August 1 Beginning balance 15 units @ $12 August 5 Purchase 10 units @ $13 August 12 Purchase 20 units @ $14 On August 15, it sold 30 units. Using the FIFO perpetual inventory method, what is the valu
- A company reports the following beginning inventory and purchases and ends the period with 30 units in inventory. Compute ending inventory using perpetual FIFO. Beginning inventory 100 units at $10 cost per unit Purchase 1 40 units at $12 cost per unit Pu
- Digital Enterprises uses a perpetual inventory system and has the following data available from inventory, purchases, and sales for the month of January. Date Activity Units Purchase Price (per unit)
- A company just starting a business made the following four inventory purchases in May: May 1 - 130 units totaling $390; May 10 - 200 units totaling $650; May 15 -200 units totaling $700; and May 28 - 170 units totaling $680. A physical count of invento
- The inventory records of Kuffel Co reflected me the following information for the year ended December 31, 2013: Date Transcation Number of Units Unit Cost Total Cost 1/1 Beginning inventory 150 $25 $
- Purchases on December 7 Purchases on December 14 Purchases on December 21 8 units $20.00 cost 17 units $30.00 cost 15 units $36.00 cost S 6-11 Perpetual: Inventory costing with LIFO LO P1 equired: Mon
- Tiller Company's beginning inventory and purchases during the fiscal year ended December 31, 20-2, were as follows: Units Unit Price Total Cost January 1, 20-2 Beginning inventory 1,500 $10.00 $15,000 January 12 1st purchase 500 11.50 5,750 February 28 2n
- A company's inventory records report the following: August 1 - Beginning balance - 29 units at $19 August 5 - Purchase - 24 units at $18 August 12 - Purchase - 28 units at $19 On August 15, it sold 58 units. Using the FIFO perpetual inventory method,
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan
- Prepare journal entries to record each of the following purchases transactions of a merchandising company. Assume a perpetual inventory system. Nov. 5 Purchased 900 units of product at a cost of $10 per unit. Terms of the sale are 4/10, n/60; the invoi
- Prepare journal entries to record each of the following purchase transactions of a merchandising company Assume a perpetual inventory system. Nov. 5 Purchased 800 units of a product at a cost of $8 per unit. The terms of the sale are 5/10, n/60: the invoi
- Rudolf Diesel Company uses a periodic inventory system. Rudolf Diesel's inventory records show the following data: Units Unit cost Inventory, January 1 10,000 $9 Purchases: June 18 9,000 8 November 8 6,000 7 A physical inventory on December 31 shows 8,000
- Sunland Company was formed on December 1, 2016. The following information is available from Sunland's inventory records for Product BAP. Units Unit Cost January 1, 2017 (beginning inventory) 636 $7 Purchases: January 5, 2017 1,272 $8 January 25, 2017 1,37
- Grouper Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company?s inventory records as of December 31, 2017. ||Item||
- Gladstone Company tracks its inventory using a periodic inventory system and recorded the following information at the end of the accounting period on December 31. Transactions ; Units ; Unit Cost ;
- A Marlow Company uses a perpetual inventory system. It entered into the following calendar-year 2011 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units @ $44/unit Feb. 10 Pur
- Perpetual Inventory Using LIFO : Beginning inventory, purchases, and sales for Item ER27 are as follows: January 1 Inventory 100 units @ $21 ; 5 Sale 80 units ; 11 Purchase 111 units @ $25 ; 21 Sale 9
- Montour company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions: Date Activities Units Acquired at Cost Units Sold at Retail Jan 1
- The following data were extracted from the records of Winsam Company: | Sales revenue | 450 units @ $35 per unit | Beginning inventory | 100 units at $16 per unit | Purchases | 400 units at $20 per unit Winsam's most recent balance sheet showed an ending
- Your company has 100 units in inventory, purchased at $16 per unit. These units have a current market value of $14. The entry to write down the inventory will include a: a. debit to Cost of Goods Sold for $1,400. b. debit to Inventory for $1,400. c. cr
- Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, 2012, the accounting records for the most popular item in inventory showed the following: Transactions Units Unit Cost Beginning inventory, Jan
- Madison, Inc. had the following balances and transactions during 2017. Beginning Inventory 40 units at $73 June 10 Purchased 80 units at $77 December 30 Sold 74 units December 31 Replacement cost $79 The company maintains its records of inventory on a per
- Pederson Company was formed on December 1, 2015. The following information is available from Pederson's inventory records for the product X: Date Purchases Sold/Issued Balance 12/2 2,000 units @ $4 per unit 2,000 12/15 6,000 units @ $4.40 per unit 8
- Pederson Company was formed on December 1, 2015. The following information is available from Pederson's inventory records for the product X: Date Purchases Sold/Issued Balance 12/2 2,000 units @ $4 per unit 2,000 12/15 6,000 units @ $4.40 per unit 8,000 1
- A company's inventory records report the following: August 1 Beginning balance 28 units at $18 August 5 Purchase 23 units at $17 August 12 Purchase 27 units at $18 On August 15, it sold 56 units. Using the FIFO perpetual inventory method, what is the valu
- A Company just starting a business made the following four inventory purchases in June: June 1 120 Units Purchased Cost $390 June 10 230 Units Purchased Cost $575 June 15 230 Units Purchased Cost $620 June 28 120 Units Purchased Cost $520 A physical count
- FAD Company uses a periodic inventory system and its inventory records for the period contain the following information: Beginning inventory (105 units @ $56/unit) $5,880 Purchases (180 units @ $56/unit) $10,080 Ending inventory (155 units @ $56/unit) $8,
- Sekhon Company had a beginning inventory on January 1 of 160 units of Product 18-15 at a cost of $20 per unit. During the year, the following purchases were made. Mar. 15 400 units at $23 July 20 250
- Sekhon Company had a beginning inventory on January 1 of 165 units of Product 4-18-15 at a cost of $18 per unit. During the year, the following purchases were made. Mar. 15 - 412 units at $
- Sekhon Company had a beginning inventory on January 1 of 173 units of Product 4-18-15 at a cost of $17 per unit. During the year, the following purchases were made. Mar. 15 432 units at $19 Sept. 4 3
- Flex Co. uses a periodic inventory system. The following are inventory transactions for the month of January: 1/1 Beginning inventory 10,000 units at $3 1/5 Purchase 5,000 units at $4 1/15 Purchase 5,000 units at $5 1/20 Sales at $10 per unit 10,000 units
- Cypress Co. has the following LIFO perpetual inventory records: December 1 Inventory on Hand: $4,450 December 7 Purchases $1,500 December 18 Cost of Goods Sold $1,300 December 31 Purchases $1,600 Dece
- FAD Company uses a periodic inventory system and its inventory records for the period contain the following information: Beginning inventory (75 units @ $50/unit) $ 3,750 Purchases (150 units @ 50/u
- Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item ER27 are as follows: January 1 Inventory 55 units @ $19 9 Sale 36 units 13 Purchase 57 units @ $21 28 Sale 25 units
- Beginning inventory, purchases, and sales for Item PK95 are as follows: January 1 Inventory 80 units @ $23 ; 9 Sale 62 units ; 13 Purchase 58 units @ $26 ; 28 Sale 27 units ; Assuming a perpetual inve
- Kite Company uses the perpetual inventory method. On January 1, 2017, Kite purchased 300 units of inventory that cost $2.00 each. On January 10, 2017, the company purchased an additional 500 units of inventory that cost $3.00 each. If Kite uses a weighted
- A company's inventory records report the following: August 1 Beginning balance 23 units @ $13 August 5 Purchase 18 units @ $12 August 12 Purchase 22 units @ $13 On August 15, it sold 46 units. Using the FIFO perpetual inventory method, what is the value o
- The following inventory transactions occur during 2014: Units Cost/unit 2/1/20 Purchase 60 $50 3/14/20 Purchase 95 $42 5/1/20 Purchase 61 $47 The company sold 150 units at $80 each and has a tax rate of 30%. Assuming that a periodic inventory system is us
- In its first month of operations, Quirk Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $8. Assume there are 360 units on hand. Compute the cost of the ending inventory
- The following data was extracted from the records of Winsam Company: Sales Revenue 450 units at $35 per unit Beginning Inventory 100 units at $16 per unit Purchases 400 units at $20 per unit What is the gross profit using the FIFO method?
- The data below is provided for XYZ Company. Beginning inventory 200 units @ $10 $2,000 Purchase 350 units @ $15 $5,250 Purchase 450 units @ $20 $9,000 Purchase 700 units @ $25 $17,500 Ending units in inventory are 1,250. What is the cost of ending invent
- In its first month of operations, Cerretti Company made three purchases of merchandise in the following sequence: (1) 300 units at $5.67, (2) 400 units at $7.37, and (3) 500 units at $8.51. Compute the cost of the ending inventory under the average-cost m
- 1/5 bought 10 units at $11.00 each; 1/8 bought 15 units at $11.25 each; 1/15 sold 8 units for $16 each; 1/22 bought 10 units at $11.50 each and sold 12 units for $16.50 each. The ending inventory is $693.75. What inventory costing method is the company us
- Electronic Center began December with 70 units of merchandise inventory that cost $ 74 each. During December, the store made the following purchases: Data Table Dec. 3 20 units @ $76 each Dec.
- A company reports the following beginning inventory and purchases, and it ends the period with 30 units in inventory. Beginning inventory 100 units at $10 cost per unit Purchase 1 40 units at $12 cost per unit Purchase 2 20 units at $14 cost per u
- The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2016 Number of Units Total Cost Unit Cost 34 40 Date Transaction 150 $ 33 $ 4,950 2,380 Beginnin
- On December 31, Hall Company had an ending inventory of $104,000 based primarily on a physical count at its warehouse. In computing the final balance of the Inventory, the following information was available: a. Inventory items with a cost of $2,760 were
- Sweet Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2017 Item Quanti
- The units of an item available for sale during the year were as follows: Jan. 1 Inventory 50 units @ $124 Mar. 10 Purchase 40 units @ $136 Aug. 30 Purchase 30 units @ $140 Dec. 12 Purchase 80 units @ $144 There are 40 units of the item in the physical inv
- Inventory records for GRT Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning inventory 300 $9.25 Apr. 10 Purchase 1,500 $9.30 GRT sold 1,625 units of inv
- The following information is available from Jansen's inventory records for Product X: Units Unit Cost January 1, 2012 ( Beg. Inventory.) 800 $9.00 Purchases: January 5, 2012 1,300 $10.00 January 25
- Star Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2012, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, 2011 2,000 $5 For the year 2012:
- Fortner Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2006. Item Quantity Unit Cost Repl. Cost/Unit Est. Selling Price/unit
- Go Tro uses a periodic inventory system. 1. At the beginning of the January 2017, inventory consisted of 2,000 units costing $8 each. 2. On January 10, 4,500 units were purchased costing $9 each. 3. F
- Beginning inventory 20 units at $5.00 each January 1: Purchase 50 units at $5.50 each January 5: Purchase 60 units at $6.00 each Ending inventory 35 units All January sales occurred after January 5. Determine COST OF GOODS SOLD for January under FIFO.
- A company has beginning inventory of 14 units at a cost of $12.00 each on October 1. On October 5, it purchases 13 units at $13.00 per unit. On October 12, it purchases 23 units at $14.00 per unit. On October 15, it sells 39 units. Using the FIFO periodic
Explore our homework questions and answers library
Browse
by subject