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. In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale. Following is the mathematical representation: Weighted-average Cost = Total Cost of Goods Available For Sale Total Number of Units Available For Sale To Compute: the amount of cost of goods sold by using FIFO (First-In, First-Out) method.

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Answer 1

Question

Chapter 6, Problem 6.20E

1.

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.

In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale. Following is the mathematical representation:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

To Compute: the amount of cost of goods sold by using FIFO (First-In, First-Out) method.

2.

To determine

To Compute: the amount of cost of goods sold by using LIFO (Last-In, First-Out) method.

3.

To determine

To Compute: the amount of cost of goods sold by using weighted-average method.

4.

To determine

the method that results in the largest gross profit.

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Answer 2

Question

Chapter 6, Problem 6.20E

1.

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.

In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale. Following is the mathematical representation:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

To Compute: the amount of cost of goods sold by using FIFO (First-In, First-Out) method.

2.

To determine

To Compute: the amount of cost of goods sold by using LIFO (Last-In, First-Out) method.

3.

To determine

To Compute: the amount of cost of goods sold by using weighted-average method.

4.

To determine

the method that results in the largest gross profit.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 6.20E

1.

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.

In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale. Following is the mathematical representation:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

To Compute: the amount of cost of goods sold by using FIFO (First-In, First-Out) method.

2.

To determine

To Compute: the amount of cost of goods sold by using LIFO (Last-In, First-Out) method.

3.

To determine

To Compute: the amount of cost of goods sold by using weighted-average method.

4.

To determine

the method that results in the largest gross profit.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 6.20E

1.

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.

In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale. Following is the mathematical representation:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

To Compute: the amount of cost of goods sold by using FIFO (First-In, First-Out) method.

2.

To determine

To Compute: the amount of cost of goods sold by using LIFO (Last-In, First-Out) method.

3.

To determine

To Compute: the amount of cost of goods sold by using weighted-average method.

4.

To determine

the method that results in the largest gross profit.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 6.20E

1.

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.

In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale. Following is the mathematical representation:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

To Compute: the amount of cost of goods sold by using FIFO (First-In, First-Out) method.

2.

To determine

To Compute: the amount of cost of goods sold by using LIFO (Last-In, First-Out) method.

3.

To determine

To Compute: the amount of cost of goods sold by using weighted-average method.

4.

To determine

the method that results in the largest gross profit.

Answer 6

Chapter 6, Problem 6.20E

1.

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.

In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale. Following is the mathematical representation:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

To Compute: the amount of cost of goods sold by using FIFO (First-In, First-Out) method.

Answer 7

Chapter 6, Problem 6.20E

1.

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.

In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale. Following is the mathematical representation:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

To Compute: the amount of cost of goods sold by using FIFO (First-In, First-Out) method.

Answer 8

2.

To determine

To Compute: the amount of cost of goods sold by using LIFO (Last-In, First-Out) method.

Answer 9

2.

To determine

To Compute: the amount of cost of goods sold by using LIFO (Last-In, First-Out) method.

Answer 10

3.

To determine

To Compute: the amount of cost of goods sold by using weighted-average method.

Answer 11

3.

To determine

To Compute: the amount of cost of goods sold by using weighted-average method.

Answer 12

4.

To determine

the method that results in the largest gross profit.

Answer 13

4.

To determine

the method that results in the largest gross profit.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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. 6QC Ch. 6 - 7. At December 31, 2018, Stevenson Company...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

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To Compute: the amount of cost of goods sold by using LIFO (Last-In, First-Out) method.

To Compute: the amount of cost of goods sold by using weighted-average method.

the method that results in the largest gross profit.

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