i need the solution for this exercise step by step (b) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what isthe value of the ending inventory at LIFO?(c) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what isthe gross profit if the inventory is valued at FIFO?(d) Why is it stated that LIFO usually produces a lower gross profit than FIFO?E8-11 (LO3) (FIFO, LIFO and Average-Cost Determination) John Adams Company's record of transactions for the month ofApril was as follows.PurchasesSalesApril 1 (balance on hand)600 @ $6.00500 @ $10.001,400 @600 @April 34.1,500 @800 @6.08910.0011.0011.006.40111,200 @700 @500 @136.50231,200 @900 @216.602712.00296.794,6005,300Instructions(a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and(2) average-cost.(b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO.() Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.(d) In an inflationary period, which inventory method-FIFO, LIFO, average-cost--will show the highest net income?E8-12 (LO3) (FIFO, LIFO, Average-Cost Inventory) Shania Twain Company was formed on December 1.2016. The following

* As per Bartleby policy, we are supposed to answer first 3 sub parts in case question have more…

E8-11 (LO3) (FIFO, LIFO and Average-Cost Determination) John Adams Company's record of transactions for the month of April was as follows, Purchases Sales April 1 (balance on hand) 600 @ $6.00 1,500 @ April 3 500 @ $10.00 1,400 @ 4. 6.08 9 10.00 8 800 @ 6.40 11 600 @ 11.00 13 21 1,200 @ 700 @ 6.50 23 1,200 @ 900 @ 11.00 6.60 27 12.00 29 500 @ 6.79 4,600 5,300 Instructions (a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and (2) average-cost. (b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO. (c) Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO,

E8-11 (LO3) (FIFO, LIFO and Average-Cost Determination) John Adams Company's record of transactions for the month of April was as follows, Purchases Sales April 1 (balance on hand) 600 @ $6.00 1,500 @ April 3 500 @ $10.00 1,400 @ 4. 6.08 9 10.00 8 800 @ 6.40 11 600 @ 11.00 13 21 1,200 @ 700 @ 6.50 23 1,200 @ 900 @ 11.00 6.60 27 12.00 29 500 @ 6.79 4,600 5,300 Instructions (a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and (2) average-cost. (b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO. (c) Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO,

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 6MC: When would using the FIFO inventory costing method produce higher inventory account balances than...

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

i need the solution for this exercise step by step

(b) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is
the value of the ending inventory at LIFO?
(c) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is
the gross profit if the inventory is valued at FIFO?
(d) Why is it stated that LIFO usually produces a lower gross profit than FIFO?
E8-11 (LO3) (FIFO, LIFO and Average-Cost Determination) John Adams Company's record of transactions for the month of
April was as follows.
Purchases
Sales
April 1 (balance on hand)
600 @ $6.00
500 @ $10.00
1,400 @
600 @
April 3
4.
1,500 @
800 @
6.08
9
10.00
11.00
11.00
6.40
11
1,200 @
700 @
500 @
13
6.50
23
1,200 @
900 @
21
6.60
27
12.00
29
6.79
4,600
5,300
Instructions
(a) Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using (1) LIFO and
(2) average-cost.
(b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO.
() Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
(d) In an inflationary period, which inventory method-FIFO, LIFO, average-cost--will show the highest net income?
E8-12 (LO3) (FIFO, LIFO, Average-Cost Inventory) Shania Twain Company was formed on December 1.2016. The following

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