Skip to main content

Business Accounting Pearson eText Horngren's Financial & Managerial Accounting: The Financial Chapters -- Instant Access (Pearson+)

(1) To prepare : Preparation of Perpetual Inventory record under the FIFO method. Introduction: Inventories are defined as assets that are held for sale, in process of production for such sale, or in the form of materials or supplies to be consumed in the production supply. Inventory valuation is important as it helps in analyzing the liquidity of a company and its effect on the income statement and balance sheet . FIFO is an inventory valuation technique, in which the first received stock of goods is issued first. It represents the latest inventory. Perpetual inventory record under FIFO Date Purchase/opening Sales Balance Units Cost per unit Amount Units Cost per unit Amount Units Cost per unit Amount Feb 1 94 $ 5 $ 470 94 $ 5 $ 470 2 60 $ 5 $ 300 34 5 170 5 50 6 $ 300 34 50 5 6 470 7 34 11 5 6 236 39 6 234 8 20 6 120 19 6 114 10 20 7 140 19 20 6 7 254 12 40 7 280 19 60 6 7 534 13 19 1 6 7 121 59 7 413 15 50 6 300 59 50 7 6 713 20 150 5 750 59 50 150 7 6 5 1,463 21 40 7 280 19 50 150 7 6 5 1,183 22 19 16 7 6 229 34 150 6 5 954 24 20 6 120 14 150 6 5 834 25 14 31 6 5 239 119 5 595 27 40 5 200 79 5 395 Total 404 $ 2,240 325 $ 1,845 79 5 395 (2) To prepare : Summary of change in inventory Introduction: Inventories are defined as assets that are held for sale, in process of production for such sale, or in the form of materials or supplies to be consumed in the production supply. Inventory valuation is important as it helps in analyzing the liquidity of a company and its effect on the income statement and balance sheet. Summary table Particulars Number of T-shirts Dollar Amount Beginning Balance 94 $ 470 Add: Purchases 310 $1,770 Less: Cost of goods sold 325 $1,845 Ending Balance 79 $395

(1) To prepare : Preparation of Perpetual Inventory record under the FIFO method. Introduction: Inventories are defined as assets that are held for sale, in process of production for such sale, or in the form of materials or supplies to be consumed in the production supply. Inventory valuation is important as it helps in analyzing the liquidity of a company and its effect on the income statement and balance sheet . FIFO is an inventory valuation technique, in which the first received stock of goods is issued first. It represents the latest inventory. Perpetual inventory record under FIFO Date Purchase/opening Sales Balance Units Cost per unit Amount Units Cost per unit Amount Units Cost per unit Amount Feb 1 94 $ 5 $ 470 94 $ 5 $ 470 2 60 $ 5 $ 300 34 5 170 5 50 6 $ 300 34 50 5 6 470 7 34 11 5 6 236 39 6 234 8 20 6 120 19 6 114 10 20 7 140 19 20 6 7 254 12 40 7 280 19 60 6 7 534 13 19 1 6 7 121 59 7 413 15 50 6 300 59 50 7 6 713 20 150 5 750 59 50 150 7 6 5 1,463 21 40 7 280 19 50 150 7 6 5 1,183 22 19 16 7 6 229 34 150 6 5 954 24 20 6 120 14 150 6 5 834 25 14 31 6 5 239 119 5 595 27 40 5 200 79 5 395 Total 404 $ 2,240 325 $ 1,845 79 5 395 (2) To prepare : Summary of change in inventory Introduction: Inventories are defined as assets that are held for sale, in process of production for such sale, or in the form of materials or supplies to be consumed in the production supply. Inventory valuation is important as it helps in analyzing the liquidity of a company and its effect on the income statement and balance sheet. Summary table Particulars Number of T-shirts Dollar Amount Beginning Balance 94 $ 470 Add: Purchases 310 $1,770 Less: Cost of goods sold 325 $1,845 Ending Balance 79 $395

Pearson eText Horngren's Financial & Managerial Accounting: The Financial Chapters -- Instant Access (Pearson+)

Pearson eText Horngren's Financial & Managerial Accounting: The Financial Chapters -- Instant Access (Pearson+)

7th Edition

ISBN: 9780136714194

Author: Tracie Miller-Nobles, Brenda Mattison

Publisher: PEARSON+

See similar textbooks

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

Blurred answer

Chapter 6, Problem 6.37BP

Chapter 6, Problem 6.39PS

Students have asked these similar questions

The record of Marshall company include

What is the pro forma net income expected to be ? General accounting

Calculate the ending work in process inventory?

Chapter 6 Solutions

Pearson eText Horngren's Financial & Managerial Accounting: The Financial Chapters -- Instant Access (Pearson+)

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

Ch. 6 - Prob. 2RQ Ch. 6 - Prob. 3RQ Ch. 6 - What is the goal of conservatism?Ch. 6 - Prob. 5RQ Ch. 6 - Under a perpetual inventory system, what are the...Ch. 6 - Prob. 7RQ Ch. 6 - Prob. 8RQ Ch. 6 - What does the lower-of-cost-or-market (LCM) rule...Ch. 6 - What account is debited when recording the...Ch. 6 - What is the effect on cost of goods sold, gross...Ch. 6 - When does an inventory error cancel out, and why?Ch. 6 - Prob. 13RQ Ch. 6 - Prob. 14RQ Ch. 6 - Prob. 15ARQ Ch. 6 - Prob. 16ARQ Ch. 6 - Determining inventory accounting principles Ward...Ch. 6 - Prob. 6.2SE Ch. 6 - Prob. 6.3SE Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Comparing Cost of Goods Sold under FIFO, UFO, and...Ch. 6 - Prob. 6.8SE Ch. 6 - Prob. 6.9SE Ch. 6 - Prob. 6.10SE Ch. 6 - Prob. 6.11SE Ch. 6 - Prob. 6.12SE Ch. 6 - Prob. 6.13SE Ch. 6 - Using accounting vocabulary Match the accounting...Ch. 6 - Prob. 6.15E Ch. 6 - Prob. 6.16E Ch. 6 - Use the following information to answer Exercises...Ch. 6 - Prob. 6.19E Ch. 6 - Prob. 6.20E Ch. 6 - Prob. 6.21E Ch. 6 - Prob. 6.22E Ch. 6 - Prob. 6.23E Ch. 6 - Prob. 6.24E Ch. 6 - Prob. 6.25E Ch. 6 - Prob. 6.26E Ch. 6 - Prob. 6.27E Ch. 6 - Prob. 6.28AP Ch. 6 - Prob. 6.29AP Ch. 6 - Prob. 6.30AP Ch. 6 - Prob. 6.31AP Ch. 6 - Prob. 6.32AP Ch. 6 - Prob. 6.33BP Ch. 6 - Prob. 6.34BP Ch. 6 - Prob. 6.35BP Ch. 6 - Prob. 6.36BP Ch. 6 - Prob. 6.37BP Ch. 6 - Prob. 6.38CP Ch. 6 - Prob. 6.39PS Ch. 6 - Prob. 6.1COP Ch. 6 - Prob. 6.1CTDC

Knowledge Booster

Background pattern image

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning

Text book image

Cornerstones of Financial Accounting

Accounting

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Cengage Learning

SEE MORE TEXTBOOKS