Inventory can be valued at LIFO, FIFO or weighted average method. LIFO means last in first out, in other words the goods which came last can go further first. FIFO means first in first out, in other words the goods which come first can go further first. In both the methods, stock should be valued as last or first stock comes in. while as per weighted average method, remaining stock will be valued at equal rate. In other words whole stock should be totaled and divided by number of weights so that average weight should be found out. This average rate should be multiplied by closing stock. Requirement 1: We have to determine the journal entry for various transactions.

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Answer 1

Question

Chapter 20, Problem 20CP

To determine

Concept introduction:

Inventory can be valued at LIFO, FIFO or weighted average method. LIFO means last in first out, in other words the goods which came last can go further first. FIFO means first in first out, in other words the goods which come first can go further first. In both the methods, stock should be valued as last or first stock comes in. while as per weighted average method, remaining stock will be valued at equal rate. In other words whole stock should be totaled and divided by number of weights so that average weight should be found out. This average rate should be multiplied by closing stock.

Requirement 1:

We have to determine the journal entry for various transactions.

To determine

Requirement 2:

We have to prepare the process cost summary using weighted average method.

To determine

Requirement 3:

We have to determine the journal entry for various transactions.

To determine

Requirement 4:

We have to determine the ledger accounts.

To determine

Requirement 5:

We have to determine the gross profit from sales in july.

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Can you explain this general accounting question using accurate calculation methods?

Answer

Reliable Production company has a beginning finished goods inventory of $24,500, raw material purchases of $31,200, cost of goods manufactured of $42,800, and an ending finished goods inventory of $27,300. The cost of goods sold for this company is?

Answer 2

Question

Chapter 20, Problem 20CP

To determine

Concept introduction:

Inventory can be valued at LIFO, FIFO or weighted average method. LIFO means last in first out, in other words the goods which came last can go further first. FIFO means first in first out, in other words the goods which come first can go further first. In both the methods, stock should be valued as last or first stock comes in. while as per weighted average method, remaining stock will be valued at equal rate. In other words whole stock should be totaled and divided by number of weights so that average weight should be found out. This average rate should be multiplied by closing stock.

Requirement 1:

We have to determine the journal entry for various transactions.

To determine

Requirement 2:

We have to prepare the process cost summary using weighted average method.

To determine

Requirement 3:

We have to determine the journal entry for various transactions.

To determine

Requirement 4:

We have to determine the ledger accounts.

To determine

Requirement 5:

We have to determine the gross profit from sales in july.

Expert Solution & Answer

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Answer 3

Question

Chapter 20, Problem 20CP

To determine

Concept introduction:

Inventory can be valued at LIFO, FIFO or weighted average method. LIFO means last in first out, in other words the goods which came last can go further first. FIFO means first in first out, in other words the goods which come first can go further first. In both the methods, stock should be valued as last or first stock comes in. while as per weighted average method, remaining stock will be valued at equal rate. In other words whole stock should be totaled and divided by number of weights so that average weight should be found out. This average rate should be multiplied by closing stock.

Requirement 1:

We have to determine the journal entry for various transactions.

To determine

Requirement 2:

We have to prepare the process cost summary using weighted average method.

To determine

Requirement 3:

We have to determine the journal entry for various transactions.

To determine

Requirement 4:

We have to determine the ledger accounts.

To determine

Requirement 5:

We have to determine the gross profit from sales in july.

Expert Solution & Answer

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Answer 4

Question

Chapter 20, Problem 20CP

To determine

Concept introduction:

Inventory can be valued at LIFO, FIFO or weighted average method. LIFO means last in first out, in other words the goods which came last can go further first. FIFO means first in first out, in other words the goods which come first can go further first. In both the methods, stock should be valued as last or first stock comes in. while as per weighted average method, remaining stock will be valued at equal rate. In other words whole stock should be totaled and divided by number of weights so that average weight should be found out. This average rate should be multiplied by closing stock.

Requirement 1:

We have to determine the journal entry for various transactions.

To determine

Requirement 2:

We have to prepare the process cost summary using weighted average method.

To determine

Requirement 3:

We have to determine the journal entry for various transactions.

To determine

Requirement 4:

We have to determine the ledger accounts.

To determine

Requirement 5:

We have to determine the gross profit from sales in july.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 20, Problem 20CP

To determine

Concept introduction:

Inventory can be valued at LIFO, FIFO or weighted average method. LIFO means last in first out, in other words the goods which came last can go further first. FIFO means first in first out, in other words the goods which come first can go further first. In both the methods, stock should be valued as last or first stock comes in. while as per weighted average method, remaining stock will be valued at equal rate. In other words whole stock should be totaled and divided by number of weights so that average weight should be found out. This average rate should be multiplied by closing stock.

Requirement 1:

We have to determine the journal entry for various transactions.

To determine

Requirement 2:

We have to prepare the process cost summary using weighted average method.

To determine

Requirement 3:

We have to determine the journal entry for various transactions.

To determine

Requirement 4:

We have to determine the ledger accounts.

To determine

Requirement 5:

We have to determine the gross profit from sales in july.

Answer 6

Chapter 20, Problem 20CP

To determine

Concept introduction:

Inventory can be valued at LIFO, FIFO or weighted average method. LIFO means last in first out, in other words the goods which came last can go further first. FIFO means first in first out, in other words the goods which come first can go further first. In both the methods, stock should be valued as last or first stock comes in. while as per weighted average method, remaining stock will be valued at equal rate. In other words whole stock should be totaled and divided by number of weights so that average weight should be found out. This average rate should be multiplied by closing stock.

Requirement 1:

We have to determine the journal entry for various transactions.

Answer 7

Chapter 20, Problem 20CP

To determine

Concept introduction:

Inventory can be valued at LIFO, FIFO or weighted average method. LIFO means last in first out, in other words the goods which came last can go further first. FIFO means first in first out, in other words the goods which come first can go further first. In both the methods, stock should be valued as last or first stock comes in. while as per weighted average method, remaining stock will be valued at equal rate. In other words whole stock should be totaled and divided by number of weights so that average weight should be found out. This average rate should be multiplied by closing stock.

Requirement 1:

We have to determine the journal entry for various transactions.

Answer 8

To determine

Requirement 2:

We have to prepare the process cost summary using weighted average method.

Answer 9

To determine

Requirement 2:

We have to prepare the process cost summary using weighted average method.

Answer 10

To determine

Requirement 3:

We have to determine the journal entry for various transactions.

Answer 11

To determine

Requirement 3:

We have to determine the journal entry for various transactions.

Answer 12

To determine

Requirement 4:

We have to determine the ledger accounts.

Answer 13

To determine

Requirement 4:

We have to determine the ledger accounts.

Answer 14

To determine

Requirement 5:

We have to determine the gross profit from sales in july.

Answer 15

To determine

Requirement 5:

We have to determine the gross profit from sales in july.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 20 - Prob. 1DQ Ch. 20 - Prob. 2DQ Ch. 20 - Prob. 3DQ Ch. 20 - Prob. 4DQ Ch. 20 - Prob. 5DQ Ch. 20 - Prob. 6DQ Ch. 20 - Prob. 7DQ Ch. 20 - Prob. 8DQ Ch. 20 - Prob. 9DQ Ch. 20 - Prob. 10DQ

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Requirement 2:

We have to prepare the process cost summary using weighted average method.

Requirement 3:

We have to determine the journal entry for various transactions.

Requirement 4:

We have to determine the ledger accounts.

Requirement 5:

We have to determine the gross profit from sales in july.

Want to see the full answer?

Chapter 20 Solutions

Concept explainers

Videos

Requirement 2: We have to prepare the process cost summary using weighted average method.

Requirement 3: We have to determine the journal entry for various transactions.

Requirement 4: We have to determine the ledger accounts.

Requirement 5: We have to determine the gross profit from sales in july.

Want to see the full answer?

Chapter 20 Solutions

Requirement 2:

We have to prepare the process cost summary using weighted average method.

Requirement 3:

We have to determine the journal entry for various transactions.

Requirement 4:

We have to determine the ledger accounts.

Requirement 5:

We have to determine the gross profit from sales in july.