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Nevins Company uses a periodic inventory system. During November, the following transactions...

Question:

Nevins Company uses a periodic inventory system. During November, the following transactions occurred:

DateTransactionUnitsCost/Unit
November 1Balance500$3.50
8Sale350
13Purchase3004.00
21Purchase2005.00
28Sale150

Required:

Compute the cost of goods sold for November and the inventory at the end of November for each of the following cost flow assumptions.

FIFO

Cost of Goods Sold$_____
Ending Inventory$_____

LIFO

Cost of Goods Sold$_____
Ending Inventory$_____

Average cost

Cost of Goods Sold$_____
Ending Inventory$_____

Inventory Valuation:

Inventory valuation method helps to determine the cost of good sold and the cost of ending inventory. There are so many methods that such as last in first out, first in first out and average inventory method.

Answer and Explanation: 1

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Valuation of inventory at FIFO Particular Receipt Issue Ending Balance
Units Rate Total Units

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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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