Name and describe the types of cost flow methods.

Question

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Answer 1

Question

Chapter 5, Problem 1Q

To determine

Name and describe the types of cost flow methods.

Expert Solution & Answer

Answer to Problem 1Q

Name the four inventory costing methods as follows:

Specific identification method.
First-in-First-Out (FIFO).
Last-In, First-Out (LIFO).
Average cost method.

Explanation of Solution

Describe the four inventory costing methods as follows.

1. Specific identification method (SI): Specific identification method can be said as identifying the items precisely which are being sold and those which are being stored as closing inventory. The companies are required to keep perfect records of the original cost of each and every individual items of the inventory.
2. First-in-First-Out (FIFO): In First-in-First-Out method, the costs of initial purchased items are sold first. The value of the ending inventory consist the recent purchased items.
3. Last-In, First-Out (LIFO): In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consist the initial purchased items.
4. Weighted-average cost method (WA): In Weighted-average method, the cost of inventory is priced at the average rate of the goods available for sale.

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Boxwood Company sells blankets for $39 each. The following information was taken from the inventory records during May. The company had no beginning inventory on May 1. Boxwood uses a perpetual inventory system.DateBlanketsUnitsCostMay 3Purchase21$1710Sale8 17Purchase36$1920Sale15 23Sale 30Purchase37$20Determine the gross profit for the sale of May 23 using the FIFO inventory costing method.a. $100b. $221c. $95d.$259

General accounting question

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Answer 2

Question

Chapter 5, Problem 1Q

To determine

Name and describe the types of cost flow methods.

Expert Solution & Answer

Answer to Problem 1Q

Name the four inventory costing methods as follows:

Specific identification method.
First-in-First-Out (FIFO).
Last-In, First-Out (LIFO).
Average cost method.

Explanation of Solution

Describe the four inventory costing methods as follows.

1. Specific identification method (SI): Specific identification method can be said as identifying the items precisely which are being sold and those which are being stored as closing inventory. The companies are required to keep perfect records of the original cost of each and every individual items of the inventory.
2. First-in-First-Out (FIFO): In First-in-First-Out method, the costs of initial purchased items are sold first. The value of the ending inventory consist the recent purchased items.
3. Last-In, First-Out (LIFO): In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consist the initial purchased items.
4. Weighted-average cost method (WA): In Weighted-average method, the cost of inventory is priced at the average rate of the goods available for sale.

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Answer 3

Question

Chapter 5, Problem 1Q

To determine

Name and describe the types of cost flow methods.

Expert Solution & Answer

Answer to Problem 1Q

Name the four inventory costing methods as follows:

Specific identification method.
First-in-First-Out (FIFO).
Last-In, First-Out (LIFO).
Average cost method.

Explanation of Solution

Describe the four inventory costing methods as follows.

1. Specific identification method (SI): Specific identification method can be said as identifying the items precisely which are being sold and those which are being stored as closing inventory. The companies are required to keep perfect records of the original cost of each and every individual items of the inventory.
2. First-in-First-Out (FIFO): In First-in-First-Out method, the costs of initial purchased items are sold first. The value of the ending inventory consist the recent purchased items.
3. Last-In, First-Out (LIFO): In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consist the initial purchased items.
4. Weighted-average cost method (WA): In Weighted-average method, the cost of inventory is priced at the average rate of the goods available for sale.

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Answer 4

Question

Chapter 5, Problem 1Q

To determine

Name and describe the types of cost flow methods.

Expert Solution & Answer

Answer to Problem 1Q

Name the four inventory costing methods as follows:

Specific identification method.
First-in-First-Out (FIFO).
Last-In, First-Out (LIFO).
Average cost method.

Explanation of Solution

Describe the four inventory costing methods as follows.

1. Specific identification method (SI): Specific identification method can be said as identifying the items precisely which are being sold and those which are being stored as closing inventory. The companies are required to keep perfect records of the original cost of each and every individual items of the inventory.
2. First-in-First-Out (FIFO): In First-in-First-Out method, the costs of initial purchased items are sold first. The value of the ending inventory consist the recent purchased items.
3. Last-In, First-Out (LIFO): In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consist the initial purchased items.
4. Weighted-average cost method (WA): In Weighted-average method, the cost of inventory is priced at the average rate of the goods available for sale.

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Answer 5

Chapter 5, Problem 1Q

To determine

Name and describe the types of cost flow methods.

Expert Solution & Answer

Answer to Problem 1Q

Name the four inventory costing methods as follows:

Specific identification method.
First-in-First-Out (FIFO).
Last-In, First-Out (LIFO).
Average cost method.

Explanation of Solution

Describe the four inventory costing methods as follows.

1. Specific identification method (SI): Specific identification method can be said as identifying the items precisely which are being sold and those which are being stored as closing inventory. The companies are required to keep perfect records of the original cost of each and every individual items of the inventory.
2. First-in-First-Out (FIFO): In First-in-First-Out method, the costs of initial purchased items are sold first. The value of the ending inventory consist the recent purchased items.
3. Last-In, First-Out (LIFO): In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consist the initial purchased items.
4. Weighted-average cost method (WA): In Weighted-average method, the cost of inventory is priced at the average rate of the goods available for sale.

Answer 6

Chapter 5, Problem 1Q

To determine

Name and describe the types of cost flow methods.

Expert Solution & Answer

Answer to Problem 1Q

Name the four inventory costing methods as follows:

Specific identification method.
First-in-First-Out (FIFO).
Last-In, First-Out (LIFO).
Average cost method.

Explanation of Solution

Describe the four inventory costing methods as follows.

1. Specific identification method (SI): Specific identification method can be said as identifying the items precisely which are being sold and those which are being stored as closing inventory. The companies are required to keep perfect records of the original cost of each and every individual items of the inventory.
2. First-in-First-Out (FIFO): In First-in-First-Out method, the costs of initial purchased items are sold first. The value of the ending inventory consist the recent purchased items.
3. Last-In, First-Out (LIFO): In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consist the initial purchased items.
4. Weighted-average cost method (WA): In Weighted-average method, the cost of inventory is priced at the average rate of the goods available for sale.

Answer 7

Chapter 5, Problem 1Q

To determine

Name and describe the types of cost flow methods.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

Name the four inventory costing methods as follows:

Specific identification method.
First-in-First-Out (FIFO).
Last-In, First-Out (LIFO).
Average cost method.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Describe the four inventory costing methods as follows.

1. Specific identification method (SI): Specific identification method can be said as identifying the items precisely which are being sold and those which are being stored as closing inventory. The companies are required to keep perfect records of the original cost of each and every individual items of the inventory.
2. First-in-First-Out (FIFO): In First-in-First-Out method, the costs of initial purchased items are sold first. The value of the ending inventory consist the recent purchased items.
3. Last-In, First-Out (LIFO): In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consist the initial purchased items.
4. Weighted-average cost method (WA): In Weighted-average method, the cost of inventory is priced at the average rate of the goods available for sale.

Answer 12

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

Name and describe the types of cost flow methods.

Name and describe the types of cost flow methods.

Answer to Problem 1Q

Explanation of Solution

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Chapter 5 Solutions