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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In the first two years of operations, Expos company reports taxable income of $125,000 and $65,000, respectively. In the first two years, the company paid $50,000 and $13,000. It is now the end of the third year, and the company has a loss of $160,000 for tax purposes. The company carries losses to the earliest year possible. The tax rate is currently 25%. Required Compute the amount of income tax payable or receivable in the current (third) year.

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.

Expert Solution & Answer

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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 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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