Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period. 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 Calculate: The ending merchandise, cost of goods sold, and gross profit using FIFO inventory costing method.

Question

Sholette Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $8.00 per MH. During the month, the actual total variable manufacturing overhead was $22500 and the actual level of activity for the period was 3000 MHs. What was the variable overhead rate variance for the month? • (a) $188, favorable • • (b) $188, unfavorable (c) $1500, unfavorable ⚫ (d) $1500, favorable

Answer 1

Question

Chapter 6, Problem 6.26E

1.

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

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 Calculate: The ending merchandise, cost of goods sold, and gross profit using FIFO inventory costing method.

2.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using LIFO inventory costing method.

3.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using weighted average inventory costing method.

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Sholette Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $8.00 per MH. During the month, the actual total variable manufacturing overhead was $22500 and the actual level of activity for the period was 3000 MHs. What was the variable overhead rate variance for the month? • (a) $188, favorable • • (b) $188, unfavorable (c) $1500, unfavorable ⚫ (d) $1500, favorable

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The firm's current ration and acid- test ratio??

Answer 2

Question

Chapter 6, Problem 6.26E

1.

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

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 Calculate: The ending merchandise, cost of goods sold, and gross profit using FIFO inventory costing method.

2.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using LIFO inventory costing method.

3.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using weighted average inventory costing method.

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Answer 3

Question

Chapter 6, Problem 6.26E

1.

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

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 Calculate: The ending merchandise, cost of goods sold, and gross profit using FIFO inventory costing method.

2.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using LIFO inventory costing method.

3.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using weighted average inventory costing method.

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Answer 4

Question

Chapter 6, Problem 6.26E

1.

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

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 Calculate: The ending merchandise, cost of goods sold, and gross profit using FIFO inventory costing method.

2.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using LIFO inventory costing method.

3.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using weighted average inventory costing method.

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Answer 5

Chapter 6, Problem 6.26E

1.

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

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 Calculate: The ending merchandise, cost of goods sold, and gross profit using FIFO inventory costing method.

2.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using LIFO inventory costing method.

3.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using weighted average inventory costing method.

Answer 6

Chapter 6, Problem 6.26E

1.

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

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 Calculate: The ending merchandise, cost of goods sold, and gross profit using FIFO inventory costing method.

Answer 7

Chapter 6, Problem 6.26E

1.

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

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 Calculate: The ending merchandise, cost of goods sold, and gross profit using FIFO inventory costing method.

Answer 8

2.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using LIFO inventory costing method.

Answer 9

2.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using LIFO inventory costing method.

Answer 10

3.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using weighted average inventory costing method.

Answer 11

3.

To determine

To Calculate: The ending merchandise, cost of goods sold, and gross profit using weighted average inventory costing method.

Answer 12

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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 Calculate: The ending merchandise, cost of goods sold, and gross profit using LIFO inventory costing method.

To Calculate: The ending merchandise, cost of goods sold, and gross profit using weighted average inventory costing method.

Chapter 6 Solutions