Perpetual Inventory System: 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. Last-in-Last-Out: In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items. To record: the inventory, purchases and cost of merchandise sold in perpetual inventory system.

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Answer 1

Question

Chapter 6, Problem 6.2BPR

(1)

To determine

Perpetual Inventory System:

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.

Last-in-Last-Out:

In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items.

To record: the inventory, purchases and cost of merchandise sold in perpetual inventory system.

(2)

To determine

To calculate: The total sales and cost of merchandise sold accounts and gross profit for the three months period.

(3)

To determine

ending inventory cost for the period ending June 30. 2016.

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NovaTek Electronics reported net sales of $3,120,000 for the year, and cost of goods sold was $2,340,000 for its current product line. A new device is underdevelopment and must be priced below $89 per unit to stay competitive in the market. Calculate the gross profit and the gross profit ratio for the year.

Answer 2

Question

Chapter 6, Problem 6.2BPR

(1)

To determine

Perpetual Inventory System:

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.

Last-in-Last-Out:

In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items.

To record: the inventory, purchases and cost of merchandise sold in perpetual inventory system.

(2)

To determine

To calculate: The total sales and cost of merchandise sold accounts and gross profit for the three months period.

(3)

To determine

ending inventory cost for the period ending June 30. 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 6.2BPR

(1)

To determine

Perpetual Inventory System:

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.

Last-in-Last-Out:

In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items.

To record: the inventory, purchases and cost of merchandise sold in perpetual inventory system.

(2)

To determine

To calculate: The total sales and cost of merchandise sold accounts and gross profit for the three months period.

(3)

To determine

ending inventory cost for the period ending June 30. 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 6.2BPR

(1)

To determine

Perpetual Inventory System:

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.

Last-in-Last-Out:

In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items.

To record: the inventory, purchases and cost of merchandise sold in perpetual inventory system.

(2)

To determine

To calculate: The total sales and cost of merchandise sold accounts and gross profit for the three months period.

(3)

To determine

ending inventory cost for the period ending June 30. 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 6.2BPR

(1)

To determine

Perpetual Inventory System:

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.

Last-in-Last-Out:

In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items.

To record: the inventory, purchases and cost of merchandise sold in perpetual inventory system.

(2)

To determine

To calculate: The total sales and cost of merchandise sold accounts and gross profit for the three months period.

(3)

To determine

ending inventory cost for the period ending June 30. 2016.

Answer 6

Chapter 6, Problem 6.2BPR

(1)

To determine

Perpetual Inventory System:

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.

Last-in-Last-Out:

In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items.

To record: the inventory, purchases and cost of merchandise sold in perpetual inventory system.

Answer 7

Chapter 6, Problem 6.2BPR

(1)

To determine

Perpetual Inventory System:

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.

Last-in-Last-Out:

In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items.

To record: the inventory, purchases and cost of merchandise sold in perpetual inventory system.

Answer 8

(2)

To determine

To calculate: The total sales and cost of merchandise sold accounts and gross profit for the three months period.

Answer 9

(2)

To determine

To calculate: The total sales and cost of merchandise sold accounts and gross profit for the three months period.

Answer 10

(3)

To determine

ending inventory cost for the period ending June 30. 2016.

Answer 11

(3)

To determine

ending inventory cost for the period ending June 30. 2016.

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 perpetual inventory system that maintains the detailed records of every inventory transaction related to purchases, and sales on a continuous basis.

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To calculate: The total sales and cost of merchandise sold accounts and gross profit for the three months period.

ending inventory cost for the period ending June 30. 2016.

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Chapter 6 Solutions