Penn Company uses a periodic inventory system. At the end of the annual accounting period,...
Question:
Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records provided the following information for product 1:
| Units | Unit Cost | |
| Inventory, December 31, 2014 | 1,980 | $5 |
| For the year 2015: Purchase, March | 215,040 | 7 |
| Purchase, August | 12,900 | 8 |
| Inventory, December 31, 2015 | 4,060 |
Required:
Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.
Inventory Valuation Methods:
Inventory Valuation Methods is the process of determining the amount of the cost of sales and ending inventory. This will help us to evaluate and compute how much will be the Gross Profit for the period. There are different Inventory Valuation Methods namely: 1. First In First Out 2.Last In First Out 3.Specific Identification and 4.Weighted Average Method.
Answer and Explanation: 1
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View this answer| Units | Unit Cost | Total Cost | |
|---|---|---|---|
| Inventory, December 31, 2014 | 1,980 | $5 | $9,900 |
| For the year... |
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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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