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 Determine: The cost of goods sold under periodic inventory system using FIFO.

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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.

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 Determine: The cost of goods sold under periodic inventory system using FIFO.

(b)

To determine

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

(c)

To determine

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

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Suppose that in 2020, the federal government of Alton Republic spent $1.2 trillion and collected $950 billion in taxes. In 2021, government spending decreased to $980 billion, while government revenue increased to $1.05 trillion. If the government debt was $8.4 trillion at the beginning of 2020, what will it be at the end of 2021?

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When should accountants apply cross-sequential analysis methods? (a) Multiple time periods require simultaneous comparison (b) Single period analysis works better (c) Sequential reviews provide more accuracy (d) Time periods remain isolated Right answer

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.

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 Determine: The cost of goods sold under periodic inventory system using FIFO.

(b)

To determine

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

(c)

To determine

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

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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.

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 Determine: The cost of goods sold under periodic inventory system using FIFO.

(b)

To determine

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

(c)

To determine

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.

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 Determine: The cost of goods sold under periodic inventory system using FIFO.

(b)

To determine

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

(c)

To determine

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

Expert Solution & Answer

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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.

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 Determine: The cost of goods sold under periodic inventory system using FIFO.

(b)

To determine

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

(c)

To determine

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.

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 Determine: The cost of goods sold under periodic inventory system using FIFO.

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.

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 Determine: The cost of goods sold under periodic inventory system using FIFO.

Answer 8

(b)

To determine

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

Answer 9

(b)

To determine

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

Answer 10

(c)

To determine

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

Answer 11

(c)

To determine

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

Ch. 6 - The key to successful business operations is...Ch. 6 - Prob. 2Q Ch. 6 - What is just-in-time inventory management? What...Ch. 6 - Prob. 4Q Ch. 6 - Prob. 5Q Ch. 6 - Prob. 6Q Ch. 6 - Prob. 7Q Ch. 6 - Prob. 8Q Ch. 6 - What is the major advantage and major disadvantage...Ch. 6 - The selection of an inventory cost flow method is...

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.

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

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