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 Compute: The ending inventory at September 30, and cost of goods sold using the FIFO methods.

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Answer 1

Question

Chapter 6, Problem 6.4E

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 Compute: The ending inventory at September 30, and cost of goods sold using the FIFO methods.

To determine

To Prove: The amount allocated to cost of goods sold under FIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the LIFO methods.

To determine

To Prove: The amount allocated to cost of goods sold under LIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the average-cost methods.

To determine

To Prove: The amount allocated to cost of goods sold under average-cost method.

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Entire chart at bottom needs filled in! Now assume that during 2024, Karane decides to buy a competitor's assets for a purchase price of $1,649,500. Compute the maximum 2024 cost recovery, including §179 expense and bonus depreciation. Karane purchased the following assets in 2024 for the lump-sum purchase price: Note: Round your final answers to the nearest whole dollar amount. Asset Cost Date Placed in Service Inventory $ 270,000 09/15 Office furniture 280,000 09/15 Machinery 300,000 09/15 Patent 243,000 09/15 Goodwill 6,500 09/15 Building 480,000 09/15 Land 70,000 09/15 Assume that Karane takes the maximum section 179 expense for the Assembly Equipment. Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2023. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2023: Asset Cost Date Placed in Service Office furniture $ 400,000…

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Answer 2

Question

Chapter 6, Problem 6.4E

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 Compute: The ending inventory at September 30, and cost of goods sold using the FIFO methods.

To determine

To Prove: The amount allocated to cost of goods sold under FIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the LIFO methods.

To determine

To Prove: The amount allocated to cost of goods sold under LIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the average-cost methods.

To determine

To Prove: The amount allocated to cost of goods sold under average-cost method.

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Answer 3

Question

Chapter 6, Problem 6.4E

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 Compute: The ending inventory at September 30, and cost of goods sold using the FIFO methods.

To determine

To Prove: The amount allocated to cost of goods sold under FIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the LIFO methods.

To determine

To Prove: The amount allocated to cost of goods sold under LIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the average-cost methods.

To determine

To Prove: The amount allocated to cost of goods sold under average-cost method.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.4E

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 Compute: The ending inventory at September 30, and cost of goods sold using the FIFO methods.

To determine

To Prove: The amount allocated to cost of goods sold under FIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the LIFO methods.

To determine

To Prove: The amount allocated to cost of goods sold under LIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the average-cost methods.

To determine

To Prove: The amount allocated to cost of goods sold under average-cost method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 6.4E

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 Compute: The ending inventory at September 30, and cost of goods sold using the FIFO methods.

To determine

To Prove: The amount allocated to cost of goods sold under FIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the LIFO methods.

To determine

To Prove: The amount allocated to cost of goods sold under LIFO method.

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the average-cost methods.

To determine

To Prove: The amount allocated to cost of goods sold under average-cost method.

Answer 6

Chapter 6, Problem 6.4E

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 Compute: The ending inventory at September 30, and cost of goods sold using the FIFO methods.

Answer 7

Chapter 6, Problem 6.4E

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 Compute: The ending inventory at September 30, and cost of goods sold using the FIFO methods.

Answer 8

To determine

To Prove: The amount allocated to cost of goods sold under FIFO method.

Answer 9

To determine

To Prove: The amount allocated to cost of goods sold under FIFO method.

Answer 10

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the LIFO methods.

Answer 11

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the LIFO methods.

Answer 12

To determine

To Prove: The amount allocated to cost of goods sold under LIFO method.

Answer 13

To determine

To Prove: The amount allocated to cost of goods sold under LIFO method.

Answer 14

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the average-cost methods.

Answer 15

To determine

To Compute: The ending inventory at September 30, and cost of goods sold using the average-cost methods.

Answer 16

To determine

To Prove: The amount allocated to cost of goods sold under average-cost method.

Answer 17

To determine

To Prove: The amount allocated to cost of goods sold under average-cost method.

Answer 18

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Answer 19

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Answer 20

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Answer 21

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...

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To Prove: The amount allocated to cost of goods sold under FIFO method.

To Compute: The ending inventory at September 30, and cost of goods sold using the LIFO methods.

To Prove: The amount allocated to cost of goods sold under LIFO method.

To Compute: The ending inventory at September 30, and cost of goods sold using the average-cost methods.

To Prove: The amount allocated to cost of goods sold under average-cost method.

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