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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Financial Accounting

The Phelan Company had 15,000 units in beginning work in process, 50% complete. 25,000 units were completed and transferred out during the month. The ending work in process is 70% complete, which is equivalent to 4,200 whole units for Conversion Costs. Materials are added at the beginning of the process. What is the number of equivalent units for Material Costs? A) 29,200 units B) 25,000 units C) 27,000 units

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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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

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Chapter 6 Solutions

Concept explainers

Videos

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