Periodic Inventory System: The periodic inventory system records and updates the inventory at the end of a particular period. The inventory balance is not updated after each transaction and it is updated periodically. Methods of inventory valuation : There are several methods of inventory valuation. Some important methods are explained as follows: • Specific identification method: Under this method the cost of goods sold and ending inventory units are identifiable and the cost is calculated accurately for each unit sold and in the inventory. • Weighted Average method: Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit. • FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased. • LIFO method: LIFO Stands for Last In First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased. Requirement (a): To determine: Cost of ending inventory and Cost of goods sold using the Specific identification method.

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Answer 1

Question

Chapter 6, Problem 15E

To determine

Concept Introduction:

Periodic Inventory System: The periodic inventory system records and updates the inventory at the end of a particular period. The inventory balance is not updated after each transaction and it is updated periodically.

Methods of inventory valuation: There are several methods of inventory valuation. Some important methods are explained as follows:

• Specific identification method: Under this method the cost of goods sold and ending inventory units are identifiable and the cost is calculated accurately for each unit sold and in the inventory.

• Weighted Average method: Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit.

• FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased.

• LIFO method: LIFO Stands for Last In First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased.

Requirement (a):

To determine: Cost of ending inventory and Cost of goods sold using the Specific identification method.

To determine

Requirement (b):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory weighted average method.

To determine

Requirement (c):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory FIFO method.

To determine

Requirement (d):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory LIFO method.

To determine

Requirement:

To identify: The method that yields lowest net income

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Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $7,000, direct labor of $3,400, and applied overhead of $2,890. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on credit) for $26,000, Job 121 is started and completed, and Job 122 is started and still in process at the end of July. Custom Cabinetry incurs the following costs during July. Job 120 Direct materials used Direct labor used $ 2,300 3,400 Job 121 $ 7,100 4,700 Job 122 $ 2,600 3,700 1. Prepare journal entries for the following July transactions and events a through e. a. Direct materials used. b. Direct labor used. c. Overhead applied. d. Sale of Job 120. e. Cost of goods sold for Job 120. Hint. Job 120 has costs from June and July. 2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (There were no jobs in Finished Goods Inventory at June…

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Answer 2

Question

Chapter 6, Problem 15E

To determine

Concept Introduction:

Periodic Inventory System: The periodic inventory system records and updates the inventory at the end of a particular period. The inventory balance is not updated after each transaction and it is updated periodically.

Methods of inventory valuation: There are several methods of inventory valuation. Some important methods are explained as follows:

• Specific identification method: Under this method the cost of goods sold and ending inventory units are identifiable and the cost is calculated accurately for each unit sold and in the inventory.

• Weighted Average method: Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit.

• FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased.

• LIFO method: LIFO Stands for Last In First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased.

Requirement (a):

To determine: Cost of ending inventory and Cost of goods sold using the Specific identification method.

To determine

Requirement (b):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory weighted average method.

To determine

Requirement (c):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory FIFO method.

To determine

Requirement (d):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory LIFO method.

To determine

Requirement:

To identify: The method that yields lowest net income

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 6, Problem 15E

To determine

Concept Introduction:

Periodic Inventory System: The periodic inventory system records and updates the inventory at the end of a particular period. The inventory balance is not updated after each transaction and it is updated periodically.

Methods of inventory valuation: There are several methods of inventory valuation. Some important methods are explained as follows:

• Specific identification method: Under this method the cost of goods sold and ending inventory units are identifiable and the cost is calculated accurately for each unit sold and in the inventory.

• Weighted Average method: Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit.

• FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased.

• LIFO method: LIFO Stands for Last In First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased.

Requirement (a):

To determine: Cost of ending inventory and Cost of goods sold using the Specific identification method.

To determine

Requirement (b):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory weighted average method.

To determine

Requirement (c):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory FIFO method.

To determine

Requirement (d):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory LIFO method.

To determine

Requirement:

To identify: The method that yields lowest net income

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 15E

To determine

Concept Introduction:

Periodic Inventory System: The periodic inventory system records and updates the inventory at the end of a particular period. The inventory balance is not updated after each transaction and it is updated periodically.

Methods of inventory valuation: There are several methods of inventory valuation. Some important methods are explained as follows:

• Specific identification method: Under this method the cost of goods sold and ending inventory units are identifiable and the cost is calculated accurately for each unit sold and in the inventory.

• Weighted Average method: Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit.

• FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased.

• LIFO method: LIFO Stands for Last In First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased.

Requirement (a):

To determine: Cost of ending inventory and Cost of goods sold using the Specific identification method.

To determine

Requirement (b):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory weighted average method.

To determine

Requirement (c):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory FIFO method.

To determine

Requirement (d):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory LIFO method.

To determine

Requirement:

To identify: The method that yields lowest net income

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 15E

To determine

Concept Introduction:

Periodic Inventory System: The periodic inventory system records and updates the inventory at the end of a particular period. The inventory balance is not updated after each transaction and it is updated periodically.

Methods of inventory valuation: There are several methods of inventory valuation. Some important methods are explained as follows:

• Specific identification method: Under this method the cost of goods sold and ending inventory units are identifiable and the cost is calculated accurately for each unit sold and in the inventory.

• Weighted Average method: Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit.

• FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased.

• LIFO method: LIFO Stands for Last In First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased.

Requirement (a):

To determine: Cost of ending inventory and Cost of goods sold using the Specific identification method.

To determine

Requirement (b):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory weighted average method.

To determine

Requirement (c):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory FIFO method.

To determine

Requirement (d):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory LIFO method.

To determine

Requirement:

To identify: The method that yields lowest net income

Answer 6

Chapter 6, Problem 15E

To determine

Concept Introduction:

Periodic Inventory System: The periodic inventory system records and updates the inventory at the end of a particular period. The inventory balance is not updated after each transaction and it is updated periodically.

Methods of inventory valuation: There are several methods of inventory valuation. Some important methods are explained as follows:

• Specific identification method: Under this method the cost of goods sold and ending inventory units are identifiable and the cost is calculated accurately for each unit sold and in the inventory.

• Weighted Average method: Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit.

• FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased.

• LIFO method: LIFO Stands for Last In First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased.

Requirement (a):

To determine: Cost of ending inventory and Cost of goods sold using the Specific identification method.

Answer 7

Chapter 6, Problem 15E

To determine

Concept Introduction:

Periodic Inventory System: The periodic inventory system records and updates the inventory at the end of a particular period. The inventory balance is not updated after each transaction and it is updated periodically.

Methods of inventory valuation: There are several methods of inventory valuation. Some important methods are explained as follows:

• Specific identification method: Under this method the cost of goods sold and ending inventory units are identifiable and the cost is calculated accurately for each unit sold and in the inventory.

• Weighted Average method: Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit.

• FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased.

• LIFO method: LIFO Stands for Last In First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased.

Requirement (a):

To determine: Cost of ending inventory and Cost of goods sold using the Specific identification method.

Answer 8

To determine

Requirement (b):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory weighted average method.

Answer 9

To determine

Requirement (b):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory weighted average method.

Answer 10

To determine

Requirement (c):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory FIFO method.

Answer 11

To determine

Requirement (c):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory FIFO method.

Answer 12

To determine

Requirement (d):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory LIFO method.

Answer 13

To determine

Requirement (d):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory LIFO method.

Answer 14

To determine

Requirement:

To identify: The method that yields lowest net income

Answer 15

To determine

Requirement:

To identify: The method that yields lowest net income

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 6 - Prob. 1DQ Ch. 6 - 2. Where is the amount of merchandise inventory...Ch. 6 - Prob. 3DQ Ch. 6 - Prob. 4DQ Ch. 6 - What does the full disclosure principle prescribe...Ch. 6 - Prob. 6DQ Ch. 6 - Prob. 7DQ Ch. 6 - Prob. 8DQ Ch. 6 - Prob. 9DQ Ch. 6 - What is the meaning of market as it is used in...

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Requirement (b):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory weighted average method.

Requirement (c):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory FIFO method.

Requirement (d):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory LIFO method.

Requirement:

To identify: The method that yields lowest net income

Want to see the full answer?

Chapter 6 Solutions

Concept explainers

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Requirement (b): To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory weighted average method.

Requirement (c): To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory FIFO method.

Requirement (d): To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory LIFO method.

Requirement: To identify: The method that yields lowest net income

Want to see the full answer?

Chapter 6 Solutions

Requirement (b):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory weighted average method.

Requirement (c):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory FIFO method.

Requirement (d):

To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory LIFO method.

Requirement:

To identify: The method that yields lowest net income