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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Boca Inc. Balance Sheets December 31 Assets Cash Accounts Receivable Inventory Prepaid Expenses 2022 2021 110,800 48,400 38,000 87,800 112,500 102,850 26,000 28,400 Long-term investments 109,000 138,000 Plant Assets 397,000 242,500 Accumulated depreciation 50,000 52,000 Total 743,300 595.950 Liabilities and Stockholders' Equity Accounts Payable 72,000 67,300 Accrued Expenses Payable 13,500 21,000 Dividends Payable 3,000 Bonds Payable Common Stock 170,000 146,000 262,000 175,000 Retained Earnings Total 222.800 186.650 243,300 595.950 Additional Information: 1. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash. 2. A new plant asset was purchased directly in exchange for common stock valued at $42,000. 3. New bonds were issued at par for $60,000. 4. 2022 Net income was $154,480. 5. A $1,000 prior period adjustment was recorded in 2021 correcting an understatement of depreciation in 2019. The 2021 balance sheet is…

Please explain the solution to this general accounting problem with accurate explanations.

Nathan Industries applies overhead using a normal costing approach based on direct labor-hours. The budgeted factory overhead was $480,000, and the budgeted direct labor-hours were 12,000. The actual factory overhead was $492,500, and the actual direct labor-hours were 12,750. How much overhead would be applied to production?

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

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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.