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

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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.

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

2.

To determine

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.

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

3.

To determine

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 weighted average inventory costing method.

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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.

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

2.

To determine

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.

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

3.

To determine

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 weighted average inventory costing method.

Expert Solution & Answer

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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.

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

2.

To determine

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.

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

3.

To determine

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 weighted average inventory costing method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

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.

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

2.

To determine

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.

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

3.

To determine

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 weighted average inventory costing method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

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.

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

2.

To determine

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.

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

3.

To determine

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 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.

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.

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

Answer 8

2.

To determine

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.

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

Answer 9

2.

To determine

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.

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

Answer 10

3.

To determine

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 weighted average inventory costing method.

Answer 11

3.

To determine

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 weighted average inventory costing method.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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 - 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

Solution Summary: The author explains the Periodic Inventory System, which is used to determine the amount of inventory at the end of each accounting period.

Concept explainers

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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.

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

Want to see the full answer?

Chapter 6 Solutions

Solution Summary: The author explains the Periodic Inventory System, which is used to determine the amount of inventory at the end of each accounting period.

Concept explainers

Videos

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

Want to see the full answer?

Chapter 6 Solutions

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.

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