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 May 31, and cost of goods sold using the FIFO methods.

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Answer 1

Question

Chapter 6, Problem 6.5E

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 May 31, 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 May 31, 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 May 31, 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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Kubin Company’s relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 4.20 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 5.20 Fixed selling expense $ 3.70 Fixed administrative expense $ 2.70 Sales commissions $ 1.20 Variable administrative expense $ 0.70 Required: For financial accounting purposes, what is the total product cost incurred to make 12,500 units? For financial accounting purposes, what is the total period cost incurred to sell 12,500 units? For financial accounting purposes, what is the total product cost incurred to make 14,000 units? For financial accounting purposes, what is the total period cost incurred to sell 11,000 units?

Choose a manufacturing company then discuss the following: First, name your company and list its main products and direct materials used. What is spoilage? Give an example of spoilage that might occur during the manufacturing of the company's product. What is scrap? Give an example of scrap that might occur during the manufacturing of the company's product. What does rework mean? Give an example of rework that might occur during the manufacturing of the company's product. A leading manufacturer recently said, "What has been regarded as normal spoilage in the past will not acceptable as normal spoilage in the future? What are they talking about? What do you think are the external or internal factors that may affect the level of normal spoilage in the future?

Answer 2

Question

Chapter 6, Problem 6.5E

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 May 31, 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 May 31, 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 May 31, 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 6.5E

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 May 31, 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 May 31, 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 May 31, 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 6.5E

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 May 31, 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 May 31, 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 May 31, 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 5

Chapter 6, Problem 6.5E

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 May 31, 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 May 31, 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 May 31, 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 6.5E

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 May 31, and cost of goods sold using the FIFO methods.

Answer 7

Chapter 6, Problem 6.5E

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 May 31, 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 May 31, and cost of goods sold using the LIFO methods.

Answer 11

To determine

To Compute: The ending inventory at May 31, 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 May 31, and cost of goods sold using the average-cost methods.

Answer 15

To determine

To Compute: The ending inventory at May 31, 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 May 31, 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 May 31, 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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