Cost flow assumptions: Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. It differs from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs. To determine: Gross profit and ending inventory under First-in-first out (FIFO) method.

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Answer 1

Question

Chapter 6, Problem 6.1APE

(a)

To determine

Cost flow assumptions:

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. It differs from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

To determine: Gross profit and ending inventory under First-in-first out (FIFO) method.

(b)

To determine

Gross profit and ending inventory under Last-in-first out (LIFO) method.

(c)

To determine

Gross profit and ending inventory under weighted average inventory method.

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General accounting

A company uses a process cost accounting system. It's Sewing Department completed and transferred out 120,000 units during the current period. The ending inventory in the Sewing Department consists of 40,000 units (20% complete with respect to direct materials and 60% complete with respect to direct labor). Overhead is applied on the basis of direct labor. Determine the equivalent units of production for the Sewing Department for direct materials, direct labor, and overhead assuming the weighted average method. a. 120,000; 120,000; 120,000. b. 120,000; 160,000; 120,000. c. 128,000; 120,000; 120,000. d. 128,000; 144,000; 144,000. e. 128,000; 184,000; 160,000.

Answer 2

Question

Chapter 6, Problem 6.1APE

(a)

To determine

Cost flow assumptions:

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. It differs from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

To determine: Gross profit and ending inventory under First-in-first out (FIFO) method.

(b)

To determine

Gross profit and ending inventory under Last-in-first out (LIFO) method.

(c)

To determine

Gross profit and ending inventory under weighted average inventory method.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 6.1APE

(a)

To determine

Cost flow assumptions:

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. It differs from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

To determine: Gross profit and ending inventory under First-in-first out (FIFO) method.

(b)

To determine

Gross profit and ending inventory under Last-in-first out (LIFO) method.

(c)

To determine

Gross profit and ending inventory under weighted average inventory method.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 6, Problem 6.1APE

(a)

To determine

Cost flow assumptions:

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. It differs from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

To determine: Gross profit and ending inventory under First-in-first out (FIFO) method.

(b)

To determine

Gross profit and ending inventory under Last-in-first out (LIFO) method.

(c)

To determine

Gross profit and ending inventory under weighted average inventory method.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.1APE

(a)

To determine

Cost flow assumptions:

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. It differs from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

To determine: Gross profit and ending inventory under First-in-first out (FIFO) method.

(b)

To determine

Gross profit and ending inventory under Last-in-first out (LIFO) method.

(c)

To determine

Gross profit and ending inventory under weighted average inventory method.

Answer 6

Chapter 6, Problem 6.1APE

(a)

To determine

Cost flow assumptions:

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. It differs from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

To determine: Gross profit and ending inventory under First-in-first out (FIFO) method.

Answer 7

Chapter 6, Problem 6.1APE

(a)

To determine

Cost flow assumptions:

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. It differs from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

To determine: Gross profit and ending inventory under First-in-first out (FIFO) method.

Answer 8

(b)

To determine

Gross profit and ending inventory under Last-in-first out (LIFO) method.

Answer 9

(b)

To determine

Gross profit and ending inventory under Last-in-first out (LIFO) method.

Answer 10

(c)

To determine

Gross profit and ending inventory under weighted average inventory method.

Answer 11

(c)

To determine

Gross profit and ending inventory under weighted average inventory method.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 6 - Before inventory purchases are recorded, the...Ch. 6 - Why is it important to periodically take a...Ch. 6 - Do the terms FIFO, LIFO, and weighted average...Ch. 6 - If inventory is being valued at cost and the price...Ch. 6 - Which of the three methods of inventory...Ch. 6 - If inventory is being valued at cost and the price...Ch. 6 - Using the following data, how should the inventory...Ch. 6 - Prob. 8DQ Ch. 6 - Hutch Co. sold merchandise to Bibbins Company on...Ch. 6 - A manufacturer shipped merchandise to a retailer...

Solution Summary: The author explains the cost flow assumptions, which determine the flow of costs when an inventory is sold.

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Gross profit and ending inventory under Last-in-first out (LIFO) method.

Gross profit and ending inventory under weighted average inventory method.

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Chapter 6 Solutions