Perpetual Inventory System: The perpetual inventory system records and updates the inventory after each and every transaction. The inventory balance is updated after each transaction and it is kept up to date at every time. 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 3E

To determine

Concept Introduction:

Perpetual Inventory System: The perpetual inventory system records and updates the inventory after each and every transaction. The inventory balance is updated after each transaction and it is kept up to date at every time.

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 perpetual inventory weighted average method.

To determine

Requirement (c):

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

To determine

Requirement (d):

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

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PART 2. (22 marks) Mangal Furnishings produce serving trays for the tourist industry in a five-stage process - Cutting & Shaping, Assembly, Sanding, Finishing and Packaging. Upon entering the finishing process, before the trays are stained and polished, a specialized piece of equipment is used to engrave a logo on each tray. After Packaging, the trays are sent to the business warehouse for delivery to customers. The following data relates to the Finishing Process for the month of March during which 3,800 trays valued at $597.90 each were transferred in from the Sanding Process. Other production costs incurred during the month are summarized as follows: Direct Materials Added Direct Manufacturing Wages Hireage cost of specialized logo equipment Manufacturing Overhead $343,380 $830,150 $21,300 $412,100 Process inspection occurs during the process and normally 2% of the trays entering the Finishing process are rejected and sold as scrap to local retailers at $750 each. During the month…

Cline Manufacturing Company uses a job order system and maintains perpetual inventory records. Indicate the the appropriate account(s) to be debited and credited for the transactions listed below. (On multiple entries enter answers in alphabetical order.) Transactions 1. Raw materials were purchased on account. 2. Issued a check to Dixon Machine Shop for repair work on factory equipment. 3. Direct materials were requisitioned for Job 280. 4. Factory labor was paid as incurred. 5. Recognized direct labor and indirect labor used. 6. The production department requisitioned 7. indirect materials for use in the factory. Manufacturing overhead was applied to production based on a predetermined overhead rate of $8 per labor hour. 8. Goods that were completed were transferred to finished goods inventory. 9. Goods costing $80,000 were sold for $105,000 on account. 10. Paid for raw materials purchased previously on account. Account(s) Debited

Based on the screenshot, what is the maximim flow?

Answer 2

Question

Chapter 6, Problem 3E

To determine

Concept Introduction:

Perpetual Inventory System: The perpetual inventory system records and updates the inventory after each and every transaction. The inventory balance is updated after each transaction and it is kept up to date at every time.

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 perpetual inventory weighted average method.

To determine

Requirement (c):

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

To determine

Requirement (d):

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

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Answer 3

Question

Chapter 6, Problem 3E

To determine

Concept Introduction:

Perpetual Inventory System: The perpetual inventory system records and updates the inventory after each and every transaction. The inventory balance is updated after each transaction and it is kept up to date at every time.

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 perpetual inventory weighted average method.

To determine

Requirement (c):

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

To determine

Requirement (d):

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

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 3E

To determine

Concept Introduction:

Perpetual Inventory System: The perpetual inventory system records and updates the inventory after each and every transaction. The inventory balance is updated after each transaction and it is kept up to date at every time.

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 perpetual inventory weighted average method.

To determine

Requirement (c):

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

To determine

Requirement (d):

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

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 3E

To determine

Concept Introduction:

Perpetual Inventory System: The perpetual inventory system records and updates the inventory after each and every transaction. The inventory balance is updated after each transaction and it is kept up to date at every time.

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 perpetual inventory weighted average method.

To determine

Requirement (c):

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

To determine

Requirement (d):

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

Answer 6

Chapter 6, Problem 3E

To determine

Concept Introduction:

Perpetual Inventory System: The perpetual inventory system records and updates the inventory after each and every transaction. The inventory balance is updated after each transaction and it is kept up to date at every time.

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 3E

To determine

Concept Introduction:

Perpetual Inventory System: The perpetual inventory system records and updates the inventory after each and every transaction. The inventory balance is updated after each transaction and it is kept up to date at every time.

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 perpetual inventory weighted average method.

Answer 9

To determine

Requirement (b):

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

Answer 10

To determine

Requirement (c):

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

Answer 11

To determine

Requirement (c):

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

Answer 12

To determine

Requirement (d):

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

Answer 13

To determine

Requirement (d):

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

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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 perpetual inventory weighted average method.

Requirement (c):

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

Requirement (d):

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

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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 perpetual inventory weighted average method.

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

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

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Chapter 6 Solutions

Requirement (b):

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

Requirement (c):

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

Requirement (d):

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