Use the following information for Problems 32 and 33.Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with 2,000 units of inventory carried at LIFO cost of $20 per unit. During the first quarter, it purchased 8,000 units at an average cost of $40 per unit and sold 9,500 units at $60 per unit.Assume the company does not expect to replace the units of beginning inventory sold; it plans to reduce inventory by year-end to 500 units. What amount of cost of goods sold should be recorded for the quarter ended March 31?a. $335,000b. $350,000c. $380,000d. $387,500

Q: Hammond Company adopted LIFO when it was formed on January 1, 2017. Since then, the company has had…

A: LIFO liquidation seems to be the process of selling older items or material in a firm's stock at a…

Q: Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception…

A:

Q: Hubble Space Incorporated has the following data which includes inventory conversion period or ICP…

A: Inventory conversion period is the number of days required to convert raw materials into finished…

Q: The following lots of a particular commodity were available for sale during the year Beginning…

A: The stock of items in which firm deals are recorded as inventory in the books of the firm. The…

Q: In its first month of operation, Concord Corporation purchased 310 units of inventory for $11, then…

A: LIFO: LIFO stands for Last-In, First-Out. As its name suggest, this method assumes that the most…

Q: What is the cost of goods sold? SHIN Industries uses the average cost approach to- account for its…

A: The cost of goods sold is calculated as cost of goods available for sale minus cost of ending…

Q: If this were done, by how much would inventories decrease? Ass

A: Information Provided: Inventory = 20,000 COGS = 85,000 ICP (current) = 85.88 Benchmark ICP = 38

Q: andhill Co. uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The…

A: Solution: Inventory at lower of cost or market (applied to individual items)   Units Unit cost…

Q: Use the information below to answer the following question.The following lots of a particular…

A:

Q: . What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2…

A: Inventory Turnover: Inventory turnover refers to the number of times a firm is able to replace its…

Q: Use the following information for Problems 32 and 33.Tristan, Inc., uses the LIFO cost-flow…

A: Cost of goods sold (LIFO) = 8000 units purchased for $40 per unit + 1500 units from beginning…

Q: Cinnamon Corp. started business in 2007 and uses the weighted average cost method.During 2007, it…

A: Under weighted average cost method, the total cost of goods is divided by total number of units…

Q: Win Company, which uses the FIFO inventory method, had 300,000 units in inventory at the beginning…

A: The correct option is  C. $5,000,000

Q: Urban Technology began the year with inventory of $320,000 and purchased $1,800,000 of goods during…

A: Cost of goods available for sale = Beginning inventory + Purchases

Q: Monte Vista uses the perpetual inventory system. At the beginning of the quarter, Monte Vista has…

A: Formula: Cost of goods sold = Beginning Inventory + Purchases - purchase returns - Purchase discount…

Q: Assume Hadley Co has the following purchases of inventory during the first month of operations…

A: Under weighted average method of inventory valuation, weighted average cost per unit will be…

Q: This is a continuation of problem 15. At December 31, Year 2, Beech Corporation still had the same…

A: Solution to Requirement (1) IFRS reports inventory on basis of lower of the cost or net realizable…

Q: 1. Assume the company does not expect to replace the units of beginning inventory sold; it plans to…

A: LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the…

Q: If Carla Vista Department Store uses the gross profit method and net sales are $600,000, the gross…

A:

Q: Illini Company uses the weighted average cost assumption. On January 1, there were 180 units on hand…

A: Calculate the cost of ending inventory, if Company uses the weighted average cost assumption. First,…

Q: Assume Huxley has the following purchases of inventory during the first month of operations…

A: FIFO means where the goods purchased first will be sold first and closing inventory will consist of…

Q: Hubble Space Incorporated has the following data which includes inventory conversion period or ICP…

A: Inventory refers to the goods or items which are stored by the business either for selling or for…

Q: Win Company, which uses the FIFO inventory method, had 300,000 units ih inventory at the beginning…

A: Given, Company follows FIFO method;   Beginning Inventory = 300000 units Costing $ 50 each Details…

Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…

A: Last in first out (LIFO) method of inventory valuation gives preference to value of inventory…

Q: $12,500 Purchases 25,000 Sales during January 20,800 The estimated inventory at January 31, 2004, is…

A: The right option is c . $21,500

Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…

A: Particulars No. of units Rate per unit Total cost 9,500 units sold 8,000 $40 $320,000…

Q: Vibrant Company had $850,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A:

Q: Herman Company has three products in its ending inventory. Specific per unit data at the end of the…

A: Answer -    NRV = Selling price -  disposal costs.   NRV − NP = NRV -  normal profit margin.…

Q: Vibrant Company had $950,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: The gross profit is calculated as difference between sales and cost of goods sold. Cost of goods…

Q: Consider the following transactions for DeTrees Company for the month shown in chronological order:…

A: The weighted average cost per unit is calculated as total cost divided by no. Of units.

Q: Based on a physical inventory at year-end, Cherry Company determined the chocolate inventory on a…

A: As per the generally accepted accounting principle, the inventory is valued at lower of cost of…

Q: Terry Company had January 1 inventory of $100,000 when it adopted dollarvalue LIFO. During the year,…

A: Given informationOpening stock (inventory) = $100000purchase = 600000Closing stock = 143360Base…

Q: The following data are for the Lite Corporation, which sells just one product:      Units Unit Cost…

A: FIFO method: The FIFO strategy works under the presumption that the first item of stock acquired, is…

Q: Apply the COGS equation used on the bottom of page 6-3 of the VLN to the following data set to…

A: The cost of goods sold is calculated as difference between cost of goods available for sale and…

Q: EFG Co. has 600 units in inventory that had been purchased for $22 each and that would currently…

A: Solution: Cost per unit of inventory = $22 Market price = $28.50 per unit According to accounting…

Q: Based on a physical inventory at year-end, Roger Company determined the chocolate inventory on a…

A: Accounting Standards  requires that, for inventory measured using FIFO or average cost, it be…

Q: The management of Aspen company believes that under the lower of cost or market rule, the 2 items…

A: a.   Merchandise inventory to be shown at cost or market price(NRV) which ever is lower .…

Q: In its first year of business, Miss Take, the bookkeeper, erroneously recorded $10,000 of product…

A: Period costs are not manufacturing costs and are fully expensed in the period which they are…

Q: At year-end 20X8, Ancho Canned Chile has 8,000 units on hand at a weighted-average cost of $13 per…

A: Ending inventory is computed by adding the beginning inventory and purchases and then subtracting…

Q: Vaughn Manufacturing began using dollar-value LIFO for costing its inventory two years ago. The…

A: Solution: Computation of inventory at base year prices and change from prior year - David Davis…

Q: Traylor Corporation began the year with three items in beginning inventory, each costing $5. During…

A: Particulars Units Price per unit Total value Beginning inventory 3 $5 $15 Purchases 5 $6 $30…

Q: Alta Ski Company’s inventory records contained the following information regarding its latest ski…

A: Solution: Introduction:   Inventory means goods are available for sale and raw materials used in the…

Q: SLR Corporation has 1,000 units of each of its two products in its year-end inventory. Per unit data…

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: AAA Hardware uses the LIFO method to value its inventory. Inventory at the beginning of the year…

A: FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it…

Q: The following are information about purchases and sales for main product of AMEER Inc. for year…

A: What is the Weighted Average Costing Method? When using the weighted average method, divide the cost…

Q: Sheldon Company's inventory records for the most recent year contain the following data: Click the…

A: Inventory valuation methods are based on the flow of inventory used by the organization. There are…

Q: Based on physical inventory at year-end, Cherry Company determined the chocolate inventory on a FIFO…

A: Inventory is reporter at Lower of Cost of Net realizable value. where, Net relizable value =…

Q: Based on physical inventory at year-end, Cherry Company determined the chocolate inventory on a FIFO…

A: Solution:- Calculation of the  amount should be reported as chocolate inventory at year-end as…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.