A. perpetual inventory using FiFO

B. lower of cost or market method

Perpetual Inventory Using FIFO Beginning Inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1 Inventory 61 units @ $21 7 Sale 43 units 15 Purchase 59 units @ $22 24 Sale 25 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a)the cost of goods sold on October 24 and (b) the inventory on October 31. a. Cost of goods sold on October 24 b. Inventory on October 31 1,298 Feedback Check My Work a. When the FIFO method is used, costs are included in cost of goods sold in the order in which they were purchased. Think of your inventory in terms of "layers." Determine how much inventory remains from each layer after each sale. b. The ending inventory is made up of the most recent purchases. updates now or try tonight? Lower-of-Cost-or-Market Method On the basis of the following data: Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value JFW1 $10 6,330 ,140 SAW91 Determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each Inventory Item, as shown $ 108,390 Feedback Check My Work Under lower of cost-or-market, for each item in Inventory, choose the lower of total cost price or the total market price as the assigned value for compul cost. First you must compute the total cost and total market for each item. Learning Objective 6. Exhibit : Determining Inventory at Lower of Cost or Market (LCM) Total Commodity Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Cost Market LCM Echo $10.25 $9.50 $4,100 $3,800 $3,800 Foxtrot 22.50 24.10 2,892 2,700 Sierra 8.00 4,650 4,650 Tango 14.00 14.75 3,920 4,130 3,920 Total $15,520 515,472 $15,070 Deck My Work