Eneri Company's inventory records show the following data:
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:
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
Under 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...
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fromChapter 6 / Lesson 3
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.