Horngren's Financial & Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780133866292
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 6, Problem 6.19E
Comparing amounts for cost of goods sold, ending inventory, and gross profit-FIFO and LIFO
Assume that Toyland store bought and sold a line of dolls during December as follows:
| Dec. 1 | Beginning merchandise inventory | 11 units@ $ 8 each |
| 8 | Sale | 6 units@$ 21 each |
| 14 | Purchase | 17 units@$ 15 each |
| 21 | Sale | 15 units @ $ 21 each |
Requirements
1. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method.
2. Compute the cost of good s sold, cost of ending merchandise inventory, and gross profit using the LIFO inventory costing method.
3. Which method results in a higher cost of goods sold?
4. Which method results in a higher cost of ending merchandise inventory?
5. Which method results in a higher gross profit?
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Assume that
Toys Galore
store purchased and sold a line of dolls during
December
as follows:
Dec. 1 Beginning merchandise inventory 13 units @ $9 each
Dec. 8 Sale 8 units @ $22 each
Dec. 14 Purchase 16 units @ $14 each
Dec. 21 Sale 14units @$22 each
Read the requirements.
1.
Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method.
2.
Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the LIFO inventory costing method.
3.
Which method results in a higher cost of goods sold?
4.
Which method results in a higher cost of ending merchandise inventory?
5.
Which method results in a higher gross profit?
Toys Galore
uses the perpetual inventory system.
Requirement 1. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method.
Begin by computing the…
Assume that J R Toys store purchased and sold a line of dolls during December as follows:
(Click the icon to view the transactions.)
JR Toys uses the perpetual inventory system.
More info
Dec. 1 Beginning merchandise inventory
8 Sale
14 Purchase
21 Sale
13
7
14
13
units @ $ 8 each
units @ $18 each
units @ $ 16 each
units @ $ 18 each.
- X
Requirements
1. Compute the cost of goods sold, cost of ending merchandise inventory, and
gross profit using the FIFO inventory costing method.
2.
Compute the cost of goods sold, cost of ending merchandise inventory, and
gross profit using the LIFO inventory costing method.
3.
Which method results in a higher cost of goods sold?
4.
Which method results in a higher cost of ending merchandise inventory?
5. Which method results in a higher gross profit?
What is the value of cost of good sold on may using weighted avarege method?
Chapter 6 Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
Ch. 6 - Which principle or concept states that businesses...Ch. 6 - Which inventory costing method assigns to ending...Ch. 6 - Assume Nile.com began April with 14 units of...Ch. 6 - Suppose Nile.com used the weighted-average...Ch. 6 - Which inventory costing method results in the...Ch. 6 - Prob. 6QCCh. 6 - At December 31, 2016, Stevenson Company overstated...Ch. 6 - Suppose Maestros had cost of goods sold during the...Ch. 6 - Suppose Nile.com used the LIFO inventory costing...Ch. 6 - Prob. 1RQ
Ch. 6 - Prob. 2RQCh. 6 - Prob. 3RQCh. 6 - What is the goal of conservatism?Ch. 6 - Prob. 5RQCh. 6 - Under a perpetual inventory system, what are the...Ch. 6 - Prob. 7RQCh. 6 - Prob. 8RQCh. 6 - What does the lower-of-cost-or-market (LCM) rule...Ch. 6 - What account is debited when recording the...Ch. 6 - What is the effect on cost of goods sold, gross...Ch. 6 - When does an inventory error cancel out, and why?Ch. 6 - Prob. 13RQCh. 6 - Prob. 14RQCh. 6 - Prob. 15ARQCh. 6 - Prob. 16ARQCh. 6 - Determining inventory accounting principles Ward...Ch. 6 - Determining inventory costing methods Ward Hard...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Comparing Cost of Goods Sold under FIFO, UFO, and...Ch. 6 - Applying the lower-of-cost-or-market rule Assume...Ch. 6 - Determining the effect of an inventory error...Ch. 6 - Computing the rate of inventory turnover and days...Ch. 6 - Use the following information to answer Short...Ch. 6 - Prob. 6.12SECh. 6 - Prob. 6.13SECh. 6 - Using accounting vocabulary Match the accounting...Ch. 6 - Comparing inventory methods Zippy, a regional...Ch. 6 - Prob. 6.16ECh. 6 - Use the following information to answer Exercises...Ch. 6 - Use the following information to answer Exercises...Ch. 6 - Comparing amounts for cost of goods sold, ending...Ch. 6 - Comparing cost of goods sold and gross...Ch. 6 - Prob. 6.21ECh. 6 - Prob. 6.22ECh. 6 - Prob. 6.23ECh. 6 - Prob. 6.24ECh. 6 - Prob. 6.25ECh. 6 - Prob. 6.26ECh. 6 - Prob. 6.27ECh. 6 - Accounting for inventory using the perpetual...Ch. 6 - Accounting for inventory using the perpetual...Ch. 6 - Prob. 6.30APCh. 6 - Correcting inventory errors over a three-year...Ch. 6 - Accounting for inventory using the periodic...Ch. 6 - Accounting for inventory using the perpetual...Ch. 6 - Prob. 6.34BPCh. 6 - Prob. 6.35BPCh. 6 - Prob. 6.36BPCh. 6 - Prob. 6.37BPCh. 6 - Prob. 6.38CPCh. 6 - Accounting for inventory using the perpetual...Ch. 6 - Suppose you manage Campbell Appliance. The stores...Ch. 6 - Ever since he was a kid, Carl Montague wanted to...Ch. 6 - The notes are an important part of a companys...
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