Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time. In First-in-First-Out method, the cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items. In Last-in-First-Out method, the cost of last purchased items are sold first. The value of the closing stock consists the initial purchased items. Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand. To Compute: The ending inventory at September 30, and cost of goods sold using the FIFO method. The ending inventory at September 30, and cost of goods sold using the LIFO method.

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Answer 1

Question

Chapter 6, Problem 6.15E

To determine

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

In First-in-First-Out method, the cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items.

In Last-in-First-Out method, the cost of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Compute:

The ending inventory at September 30, and cost of goods sold using the FIFO method.

The ending inventory at September 30, and cost of goods sold using the LIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the moving average-cost method.

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Please explain how to calculate the FIFO and LIFO for the below problem and to prepare the income statement for the FIFO, LIFO and Average cost.Problem: Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 1,990 $ 4 For the current year: Purchase, March 21 5,130 6 Purchase, August 1 2,920 7 Inventory, December 31, current year 4,050 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.) My calculations are below. Units Cost Per Unit Total Cost FIFO LIFO Average Cost Beginning inventory 1990 $ 4 $…

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 March 9 March 18 March 25 March 29 Perpetual FIFO Perpetual LIFO Date March 1 Complete this question by entering your answers in the tabs below. March 5 Average March 5 March 9 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, units sold include 135 units from beginning inventory, 265 units from the March 5 purchase, 115 units from the March 18 purchase, and 155 units from the March 25 purchase. March 18 Beginning inventory Purchase Sales Purchase Purchase Sales Totals. Average March 18 Activities Compute the cost assigned to ending inventory using weighted average. Note: Round your average cost per unit to 2 decimal places. March 25 Average March 25 March 29 Totals Weighted Average # of units Goods Purchased Units Acquired at Cost…

Can you please explain how to get the Cost of Goods Solds category using LIFO?

Answer 2

Question

Chapter 6, Problem 6.15E

To determine

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

In First-in-First-Out method, the cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items.

In Last-in-First-Out method, the cost of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Compute:

The ending inventory at September 30, and cost of goods sold using the FIFO method.

The ending inventory at September 30, and cost of goods sold using the LIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the moving average-cost method.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 6.15E

To determine

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

In First-in-First-Out method, the cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items.

In Last-in-First-Out method, the cost of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Compute:

The ending inventory at September 30, and cost of goods sold using the FIFO method.

The ending inventory at September 30, and cost of goods sold using the LIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the moving average-cost method.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 6, Problem 6.15E

To determine

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

In First-in-First-Out method, the cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items.

In Last-in-First-Out method, the cost of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Compute:

The ending inventory at September 30, and cost of goods sold using the FIFO method.

The ending inventory at September 30, and cost of goods sold using the LIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the moving average-cost method.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.15E

To determine

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

In First-in-First-Out method, the cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items.

In Last-in-First-Out method, the cost of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Compute:

The ending inventory at September 30, and cost of goods sold using the FIFO method.

The ending inventory at September 30, and cost of goods sold using the LIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the moving average-cost method.

Answer 6

Chapter 6, Problem 6.15E

To determine

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

In First-in-First-Out method, the cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items.

In Last-in-First-Out method, the cost of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Compute:

The ending inventory at September 30, and cost of goods sold using the FIFO method.

The ending inventory at September 30, and cost of goods sold using the LIFO method.

Answer 7

Chapter 6, Problem 6.15E

To determine

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

In First-in-First-Out method, the cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items.

In Last-in-First-Out method, the cost of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Compute:

The ending inventory at September 30, and cost of goods sold using the FIFO method.

The ending inventory at September 30, and cost of goods sold using the LIFO method.

Answer 8

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the moving average-cost method.

Answer 9

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the moving average-cost method.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 6 - The key to successful business operations is...Ch. 6 - Prob. 2Q Ch. 6 - What is just-in-time inventory management? What...Ch. 6 - Prob. 4Q Ch. 6 - Prob. 5Q Ch. 6 - Prob. 6Q Ch. 6 - Prob. 7Q Ch. 6 - Prob. 8Q Ch. 6 - What is the major advantage and major disadvantage...Ch. 6 - The selection of an inventory cost flow method is...

Solution Summary: The author explains how to calculate the cost of goods sold and ending inventory using the moving average-cost method.

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To Compute: The ending inventory at September 30, and cost of goods sold using the moving average-cost method.

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