The following is a record of Ayayai Company's transactions for Boston Teapots for the month of May 2017.
May 1 Balance 468 units$18
May 10 Sale 351 units $35
May 12 Purchase 702 units $27
May 20 sale 632 units @ $35
May 28 Purchase 468 units $31
perpetual inventories are not maintained and that a physical count at the end of the month shows 655 units on hand, what is the cost of the ending inventory using (1) FIFO and (2) LIFO b.Assuming that perpetual records are maintained and they tie into the general ledger, calculate the ending inventory using (1) FIFO and (2) LIFO
FIFO and LIFO Method:
First in First Out (FIFO) method is the where goods bought first are sold first and Last in First Out (LIFO) method means goods bought last are sold first.Weighted average cost method is also used in stock valuation.
Answer and Explanation: 1
a)perpetual inventories are not maintained and that a physical count at the end of the month shows 655 units on hand, the cost of the ending inventory...
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fromChapter 6 / Lesson 11
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.