Inventory Accounting Systems: Merchandise operation is an operation undertaken by the company to conclude sales of goods to the customer . The business must take into account its total inventory value. It needs to identify the worth of merchandise inventory. There are three prime methods of inventory valuation , they are: 1. First-in-first out method (FIFO) 2. Last-in-last out method (LIFO) 3. Average cost method To Explain: The cost flow assumption used to value inventory by the Company LV.

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Answer 1

Question

Chapter 6, Problem 6.3IE

(a)

To determine

Inventory Accounting Systems: Merchandise operation is an operation undertaken by the company to conclude sales of goods to the customer. The business must take into account its total inventory value. It needs to identify the worth of merchandise inventory. There are three prime methods of inventory valuation, they are:

1. First-in-first out method (FIFO)

2. Last-in-last out method (LIFO)

3. Average cost method

To Explain: The cost flow assumption used to value inventory by the Company LV.

(b)

To determine

To Explain: The reported amount of goods purchased for retail and finished products as on December 31, 2014.

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PROBLEM E Mulles, the owner of a successful fertilizer business, felt that it is time to expand operations. Mulles offered to form a partnership with Lucena, the owner of a nearby warehouse. The partnership would be called Mulles & Lucena Storage and Sales. Lucena accepted Mulles' offer and the partnership was formed on July 1,2024. Presented below is the trial balance for Mulles Fertilizer Supply on June 30, 2024: Cash Accounts Receivable Allowance for Uncollectible Accounts. Inventory Prepaid Rent Store Equipment Accumulated Depreciation Notes Payable Accounts Payable Mulles, Capital Total P 229,500 2,103,000 P 117,000 1,012,500 29,250 390,000 P3,764,250 97,500 330,000 505,500 2,714,250 P3,764,250 The partners agreed to share profits and losses equally and decided to invest an equal amount in the partnership. Lucena and Mulles agreed that Lucena's land is worth P500,000 and his building P1,450,000. Lucena is to contribute cash in an amount sufficient to make his capital account…

PLEASE HELP. ALL RED CELLS ARE INCORRECT. NOTICE, REVENUE ACCOUNTS ARE IN THE DROPDOWN!

Answer 2

Question

Chapter 6, Problem 6.3IE

(a)

To determine

Inventory Accounting Systems: Merchandise operation is an operation undertaken by the company to conclude sales of goods to the customer. The business must take into account its total inventory value. It needs to identify the worth of merchandise inventory. There are three prime methods of inventory valuation, they are:

1. First-in-first out method (FIFO)

2. Last-in-last out method (LIFO)

3. Average cost method

To Explain: The cost flow assumption used to value inventory by the Company LV.

(b)

To determine

To Explain: The reported amount of goods purchased for retail and finished products as on December 31, 2014.

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Answer 3

Question

Chapter 6, Problem 6.3IE

(a)

To determine

Inventory Accounting Systems: Merchandise operation is an operation undertaken by the company to conclude sales of goods to the customer. The business must take into account its total inventory value. It needs to identify the worth of merchandise inventory. There are three prime methods of inventory valuation, they are:

1. First-in-first out method (FIFO)

2. Last-in-last out method (LIFO)

3. Average cost method

To Explain: The cost flow assumption used to value inventory by the Company LV.

(b)

To determine

To Explain: The reported amount of goods purchased for retail and finished products as on December 31, 2014.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 6, Problem 6.3IE

(a)

To determine

Inventory Accounting Systems: Merchandise operation is an operation undertaken by the company to conclude sales of goods to the customer. The business must take into account its total inventory value. It needs to identify the worth of merchandise inventory. There are three prime methods of inventory valuation, they are:

1. First-in-first out method (FIFO)

2. Last-in-last out method (LIFO)

3. Average cost method

To Explain: The cost flow assumption used to value inventory by the Company LV.

(b)

To determine

To Explain: The reported amount of goods purchased for retail and finished products as on December 31, 2014.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.3IE

(a)

To determine

Inventory Accounting Systems: Merchandise operation is an operation undertaken by the company to conclude sales of goods to the customer. The business must take into account its total inventory value. It needs to identify the worth of merchandise inventory. There are three prime methods of inventory valuation, they are:

1. First-in-first out method (FIFO)

2. Last-in-last out method (LIFO)

3. Average cost method

To Explain: The cost flow assumption used to value inventory by the Company LV.

(b)

To determine

To Explain: The reported amount of goods purchased for retail and finished products as on December 31, 2014.

Answer 6

Chapter 6, Problem 6.3IE

(a)

To determine

Inventory Accounting Systems: Merchandise operation is an operation undertaken by the company to conclude sales of goods to the customer. The business must take into account its total inventory value. It needs to identify the worth of merchandise inventory. There are three prime methods of inventory valuation, they are:

1. First-in-first out method (FIFO)

2. Last-in-last out method (LIFO)

3. Average cost method

To Explain: The cost flow assumption used to value inventory by the Company LV.

Answer 7

Chapter 6, Problem 6.3IE

(a)

To determine

Inventory Accounting Systems: Merchandise operation is an operation undertaken by the company to conclude sales of goods to the customer. The business must take into account its total inventory value. It needs to identify the worth of merchandise inventory. There are three prime methods of inventory valuation, they are:

1. First-in-first out method (FIFO)

2. Last-in-last out method (LIFO)

3. Average cost method

To Explain: The cost flow assumption used to value inventory by the Company LV.

Answer 8

(b)

To determine

To Explain: The reported amount of goods purchased for retail and finished products as on December 31, 2014.

Answer 9

(b)

To determine

To Explain: The reported amount of goods purchased for retail and finished products as on December 31, 2014.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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 cost flow assumption used by Company LV to value its inventory.

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To Explain: The reported amount of goods purchased for retail and finished products as on December 31, 2014.

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