Comparative income statements for the inventory costing methods of FIFO, LIFO and weighted average. Given info, Date Particulars Units acquired Cost per unit ($) Jan 1 Beginning inventory 700 18 Feb 20 Purchases 1,700 19 May 16 Purchases 800 20 Oct 3 Purchases 500 21 Dec 11 Purchases 2,300 22 Total 6,000

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Answer 1

Question

Chapter 5, Problem 8PSA

1.

To determine

To prepare: Comparative income statements for the inventory costing methods of FIFO, LIFO and weighted average.

Given info,

Date

Particulars

Units acquired

Cost per unit ($)

Jan 1

Beginning inventory

700

18

Feb 20

Purchases

1,700

19

May 16

Purchases

800

20

Oct 3

Purchases

500

21

Dec 11

Purchases

2,300

22

Total

6,000

2.

To determine

To identify: Impact on the financial results from the use of the three alternative methods if there is a decline in the costs related to the purchases of inventory.

3.

To determine

Advantages and disadvantages in case of:
(a) LIFO
(b) FIFO

Given info,
Assumption of continuous increase in the costs is considered.

a)

LIFO

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Answer 2

Question

Chapter 5, Problem 8PSA

1.

To determine

To prepare: Comparative income statements for the inventory costing methods of FIFO, LIFO and weighted average.

Given info,

Date

Particulars

Units acquired

Cost per unit ($)

Jan 1

Beginning inventory

700

18

Feb 20

Purchases

1,700

19

May 16

Purchases

800

20

Oct 3

Purchases

500

21

Dec 11

Purchases

2,300

22

Total

6,000

2.

To determine

To identify: Impact on the financial results from the use of the three alternative methods if there is a decline in the costs related to the purchases of inventory.

3.

To determine

Advantages and disadvantages in case of:
(a) LIFO
(b) FIFO

Given info,
Assumption of continuous increase in the costs is considered.

a)

LIFO

Expert Solution & Answer

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Answer 3

Question

Chapter 5, Problem 8PSA

1.

To determine

To prepare: Comparative income statements for the inventory costing methods of FIFO, LIFO and weighted average.

Given info,

Date

Particulars

Units acquired

Cost per unit ($)

Jan 1

Beginning inventory

700

18

Feb 20

Purchases

1,700

19

May 16

Purchases

800

20

Oct 3

Purchases

500

21

Dec 11

Purchases

2,300

22

Total

6,000

2.

To determine

To identify: Impact on the financial results from the use of the three alternative methods if there is a decline in the costs related to the purchases of inventory.

3.

To determine

Advantages and disadvantages in case of:
(a) LIFO
(b) FIFO

Given info,
Assumption of continuous increase in the costs is considered.

a)

LIFO

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 8PSA

1.

To determine

To prepare: Comparative income statements for the inventory costing methods of FIFO, LIFO and weighted average.

Given info,

Date

Particulars

Units acquired

Cost per unit ($)

Jan 1

Beginning inventory

700

18

Feb 20

Purchases

1,700

19

May 16

Purchases

800

20

Oct 3

Purchases

500

21

Dec 11

Purchases

2,300

22

Total

6,000

2.

To determine

To identify: Impact on the financial results from the use of the three alternative methods if there is a decline in the costs related to the purchases of inventory.

3.

To determine

Advantages and disadvantages in case of:
(a) LIFO
(b) FIFO

Given info,
Assumption of continuous increase in the costs is considered.

a)

LIFO

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 8PSA

1.

To determine

To prepare: Comparative income statements for the inventory costing methods of FIFO, LIFO and weighted average.

Given info,

Date

Particulars

Units acquired

Cost per unit ($)

Jan 1

Beginning inventory

700

18

Feb 20

Purchases

1,700

19

May 16

Purchases

800

20

Oct 3

Purchases

500

21

Dec 11

Purchases

2,300

22

Total

6,000

2.

To determine

To identify: Impact on the financial results from the use of the three alternative methods if there is a decline in the costs related to the purchases of inventory.

3.

To determine

Advantages and disadvantages in case of:
(a) LIFO
(b) FIFO

Given info,
Assumption of continuous increase in the costs is considered.

a)

LIFO

Answer 6

Chapter 5, Problem 8PSA

1.

To determine

To prepare: Comparative income statements for the inventory costing methods of FIFO, LIFO and weighted average.

Given info,

Date

Particulars

Units acquired

Cost per unit ($)

Jan 1

Beginning inventory

700

18

Feb 20

Purchases

1,700

19

May 16

Purchases

800

20

Oct 3

Purchases

500

21

Dec 11

Purchases

2,300

22

Total

6,000

Answer 7

Chapter 5, Problem 8PSA

1.

To determine

To prepare: Comparative income statements for the inventory costing methods of FIFO, LIFO and weighted average.

Given info,

Date

Particulars

Units acquired

Cost per unit ($)

Jan 1

Beginning inventory

700

18

Feb 20

Purchases

1,700

19

May 16

Purchases

800

20

Oct 3

Purchases

500

21

Dec 11

Purchases

2,300

22

Total

6,000

Answer 8

2.

To determine

To identify: Impact on the financial results from the use of the three alternative methods if there is a decline in the costs related to the purchases of inventory.

Answer 9

2.

To determine

To identify: Impact on the financial results from the use of the three alternative methods if there is a decline in the costs related to the purchases of inventory.

Answer 10

3.

To determine

Advantages and disadvantages in case of:
(a) LIFO
(b) FIFO

Given info,
Assumption of continuous increase in the costs is considered.

a)

LIFO

Answer 11

3.

To determine

Advantages and disadvantages in case of:
(a) LIFO
(b) FIFO

Given info,
Assumption of continuous increase in the costs is considered.

a)

LIFO

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 5 - Prob. 1MCQ Ch. 5 - Prob. 2MCQ Ch. 5 - Prob. 3MCQ Ch. 5 - Prob. 4MCQ Ch. 5 - Prob. 5MCQ Ch. 5 - Prob. 6MCQ Ch. 5 - Describe how costs flow inventory to cost of goods...Ch. 5 - Where is the amount of merchandise inventory...Ch. 5 - Why are incidental costs sometimes ignored in...Ch. 5 - Prob. 4DQ

Date	Particulars	Units acquired	Cost per unit ($)
Jan 1	Beginning inventory	700	18
Feb 20	Purchases	1,700	19
May 16	Purchases	800	20
Oct 3	Purchases	500	21
Dec 11	Purchases	2,300	22
	Total	6,000

To identify: Impact on the financial results from the use of the three alternative methods if there is a decline in the costs related to the purchases of inventory.

Advantages and disadvantages in case of: (a) LIFO (b) FIFO Given info, Assumption of continuous increase in the costs is considered. a) LIFO

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Chapter 5 Solutions

Advantages and disadvantages in case of:
(a) LIFO
(b) FIFO

Given info,
Assumption of continuous increase in the costs is considered.

a)

LIFO