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. The cost of goods sold under periodic inventory system using FIFO, LIFO, and average-cost method.

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Answer 1

Question

Chapter 6, Problem 6.2DIE

(a)

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.

The cost of goods sold under periodic inventory system using FIFO, LIFO, and average-cost method.

(b)

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.

The cost of goods sold under periodic inventory system using LIFO.

(c)

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 to determine average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal number of units Available for Sale

The cost of goods sold under periodic inventory system using average-cost method.

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XcellGraphics is a printing company that uses a job-order costing system. The firm expects to have $75,000 in indirect costs and $125,000 in direct labor costs. The cost of direct labor is $45 per hour. At the end of the period, overhead was underallocated by $14,500. What was XcellGraphics' actual manufacturing overhead cost if work completed during the period required 3,900 direct labor hours?

Please provide the answer to this general accounting question using the right approach.

Can you provide a detailed solution to this financial accounting problem using proper principles?

Answer 2

Question

Chapter 6, Problem 6.2DIE

(a)

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.

The cost of goods sold under periodic inventory system using FIFO, LIFO, and average-cost method.

(b)

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.

The cost of goods sold under periodic inventory system using LIFO.

(c)

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 to determine average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal number of units Available for Sale

The cost of goods sold under periodic inventory system using average-cost method.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 6.2DIE

(a)

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.

The cost of goods sold under periodic inventory system using FIFO, LIFO, and average-cost method.

(b)

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.

The cost of goods sold under periodic inventory system using LIFO.

(c)

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 to determine average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal number of units Available for Sale

The cost of goods sold under periodic inventory system using average-cost method.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.2DIE

(a)

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.

The cost of goods sold under periodic inventory system using FIFO, LIFO, and average-cost method.

(b)

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.

The cost of goods sold under periodic inventory system using LIFO.

(c)

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 to determine average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal number of units Available for Sale

The cost of goods sold under periodic inventory system using average-cost method.

Expert Solution & Answer

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See solution

Answer 5

Chapter 6, Problem 6.2DIE

(a)

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.

The cost of goods sold under periodic inventory system using FIFO, LIFO, and average-cost method.

(b)

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.

The cost of goods sold under periodic inventory system using LIFO.

(c)

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 to determine average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal number of units Available for Sale

The cost of goods sold under periodic inventory system using average-cost method.

Answer 6

Chapter 6, Problem 6.2DIE

(a)

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.

The cost of goods sold under periodic inventory system using FIFO, LIFO, and average-cost method.

Answer 7

Chapter 6, Problem 6.2DIE

(a)

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.

The cost of goods sold under periodic inventory system using FIFO, LIFO, and average-cost method.

Answer 8

(b)

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.

The cost of goods sold under periodic inventory system using LIFO.

Answer 9

(b)

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.

The cost of goods sold under periodic inventory system using LIFO.

Answer 10

(c)

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 to determine average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal number of units Available for Sale

The cost of goods sold under periodic inventory system using average-cost method.

Answer 11

(c)

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 to determine average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal number of units Available for Sale

The cost of goods sold under periodic inventory system using average-cost method.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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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.

The cost of goods sold under periodic inventory system using LIFO.

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Chapter 6 Solutions

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. The cost of goods sold under periodic inventory system using LIFO.

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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.

The cost of goods sold under periodic inventory system using LIFO.