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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items. To Compute: The cost of ending inventory and cost of goods sold using FIFO.

Question

Geisner Inc. has total assets of $1,000,000 and total liabilities of $600,000. The industry average debt-to-equity ratio is 1.20. Calculate Geisner's debt-to-equity ratio and indicate whether the company's default risk is higher or lower than the average of other companies in the industry.

Answer 1

Question

Chapter 6, Problem 6.7E

(a)(1)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using FIFO.

(a)(2)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using LIFO.

(b)

To determine

The costing method which gives highest ending inventory.

(c)

To determine

The costing method which gives higher cost of goods sold.

Expert Solution & Answer

Learn your wayIncludes step-by-step video

See solution

Check out sample textbook solution

03:59

Students have asked these similar questions

Geisner Inc. has total assets of $1,000,000 and total liabilities of $600,000. The industry average debt-to-equity ratio is 1.20. Calculate Geisner's debt-to-equity ratio and indicate whether the company's default risk is higher or lower than the average of other companies in the industry.

Hy expert give me solution this question

Baker's Market began the current month with inventory costing $35,250, then purchased additional inventory at a cost of $78,400. The perpetual inventory system indicates that inventory costing $82,500 was sold during the month for $88,250. An inventory count at month-end shows that inventory costing $29,000 is actually on hand. What amount of shrinkage occurred during the month? a) $350 b) $1,150 c) $1,750 d) $2,150

Answer 2

Question

Chapter 6, Problem 6.7E

(a)(1)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using FIFO.

(a)(2)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using LIFO.

(b)

To determine

The costing method which gives highest ending inventory.

(c)

To determine

The costing method which gives higher cost of goods sold.

Expert Solution & Answer

Learn your wayIncludes step-by-step video

See solution

Check out sample textbook solution

03:59

Answer 3

Question

Chapter 6, Problem 6.7E

(a)(1)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using FIFO.

(a)(2)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using LIFO.

(b)

To determine

The costing method which gives highest ending inventory.

(c)

To determine

The costing method which gives higher cost of goods sold.

Expert Solution & Answer

Learn your wayIncludes step-by-step video

See solution

Check out sample textbook solution

03:59

Answer 4

Question

Chapter 6, Problem 6.7E

(a)(1)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using FIFO.

(a)(2)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using LIFO.

(b)

To determine

The costing method which gives highest ending inventory.

(c)

To determine

The costing method which gives higher cost of goods sold.

Expert Solution & Answer

Learn your wayIncludes step-by-step video

See solution

Check out sample textbook solution

03:59

Answer 5

Chapter 6, Problem 6.7E

(a)(1)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using FIFO.

(a)(2)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using LIFO.

(b)

To determine

The costing method which gives highest ending inventory.

(c)

To determine

The costing method which gives higher cost of goods sold.

Answer 6

Chapter 6, Problem 6.7E

(a)(1)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using FIFO.

Answer 7

Chapter 6, Problem 6.7E

(a)(1)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using FIFO.

Answer 8

(a)(2)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using LIFO.

Answer 9

(a)(2)

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 initially purchased items are considered as cost of goods sold, for the items which 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 considered as cost of goods sold, for the items which are sold first. The value of the closing stock consists the initial purchased items.

To Compute: The cost of ending inventory and cost of goods sold using LIFO.

Answer 10

(b)

To determine

The costing method which gives highest ending inventory.

Answer 11

(b)

To determine

The costing method which gives highest ending inventory.

Answer 12

(c)

To determine

The costing method which gives higher cost of goods sold.

Answer 13

(c)

To determine

The costing method which gives higher cost of goods sold.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Learn your wayIncludes step-by-step video

See solution

Check out sample textbook solution

Answer 17

Learn your wayIncludes step-by-step video

See solution

Check out sample textbook solution

Answer 18

Learn your wayIncludes step-by-step video

See solution

Check out sample textbook solution

Answer 19

Learn your wayIncludes step-by-step video

Answer 20

Learn your wayIncludes step-by-step video

Answer 21

Learn your wayIncludes step-by-step video

Answer 22

Learn your way

Answer 23

Includes step-by-step video

Answer 24

See solution

Check out sample textbook solution

Answer 25

Ch. 6 - Prob. 1Q Ch. 6 - 2. An item must possess two characteristics to be...Ch. 6 - Prob. 3Q Ch. 6 - 4. (a) Rochelle Company ships merchandise to Jay...Ch. 6 - 5. Katz Hat Shop received a shipment of hats for...Ch. 6 - 6. Explain the difference between the terms FOB...Ch. 6 - 7. Kyle Ebert believes that the allocation of cost...Ch. 6 - 8. What is the major advantage and major...Ch. 6 - 9. “The selection of an inventory cost flow method...Ch. 6 - 10. Winch assumed inventory cost flow...

Videos

The costing method which gives highest ending inventory.

The costing method which gives higher cost of goods sold.

Chapter 6 Solutions