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. FIFO : In First-in-First-Out method, items purchased initially are sold first. So, the value of the ending inventory consists the recent cost for the remaining unsold items. LIFO : In Last-in-First-Out method, items purchased recently are sold first. So, the value of the ending inventory consists the initial cost for the remaining unsold items. Average cost method : In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale. Formula for weighted average cost method: Weighted-average Cost = Total Cost of Goods Available For Sale Total Number of Units Available For Sale To compute: The cost of ending inventory and cost of goods sold using FIFO method.

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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.

FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the ending inventory consists the recent cost for the remaining unsold items.

LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the ending inventory consists the initial cost for the remaining unsold items.

Average cost method: In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale.

Formula for weighted average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

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

(b)

To determine

The costing method which gives highest inventory, and highest cost of goods sold.

(c)

To determine

To relate: The average-cost values for ending inventory, and cost of goods sold with ending inventory, and cost of goods for FIFO and LIFO.

(d)

To determine

To Explain: The reason for the average cost.

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Pettis needs to determine its year-end inventory. The warehouse contains 27,000 units, of which 3,700 were damaged by flood and cannot be sold. Another 2,700 units were purchased and shipped to FOB destination, and are in transit. The company also consigns goods and has 4,700 units at a consignee's location. How many units should Pettis include in its year-end inventory? A. 34,400 B. 25,300 C. 30,700 D. 38,100 E. 28,000

financial accounting question

The total cost that would be recorded on the job cost sheet for Job 593 would be:

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.

FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the ending inventory consists the recent cost for the remaining unsold items.

LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the ending inventory consists the initial cost for the remaining unsold items.

Average cost method: In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale.

Formula for weighted average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

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

(b)

To determine

The costing method which gives highest inventory, and highest cost of goods sold.

(c)

To determine

To relate: The average-cost values for ending inventory, and cost of goods sold with ending inventory, and cost of goods for FIFO and LIFO.

(d)

To determine

To Explain: The reason for the average cost.

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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.

FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the ending inventory consists the recent cost for the remaining unsold items.

LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the ending inventory consists the initial cost for the remaining unsold items.

Average cost method: In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale.

Formula for weighted average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

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

(b)

To determine

The costing method which gives highest inventory, and highest cost of goods sold.

(c)

To determine

To relate: The average-cost values for ending inventory, and cost of goods sold with ending inventory, and cost of goods for FIFO and LIFO.

(d)

To determine

To Explain: The reason for the average cost.

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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.

FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the ending inventory consists the recent cost for the remaining unsold items.

LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the ending inventory consists the initial cost for the remaining unsold items.

Average cost method: In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale.

Formula for weighted average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

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

(b)

To determine

The costing method which gives highest inventory, and highest cost of goods sold.

(c)

To determine

To relate: The average-cost values for ending inventory, and cost of goods sold with ending inventory, and cost of goods for FIFO and LIFO.

(d)

To determine

To Explain: The reason for the average cost.

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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.

FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the ending inventory consists the recent cost for the remaining unsold items.

LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the ending inventory consists the initial cost for the remaining unsold items.

Average cost method: In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale.

Formula for weighted average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

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

(b)

To determine

The costing method which gives highest inventory, and highest cost of goods sold.

(c)

To determine

To relate: The average-cost values for ending inventory, and cost of goods sold with ending inventory, and cost of goods for FIFO and LIFO.

(d)

To determine

To Explain: The reason for the average cost.

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.

FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the ending inventory consists the recent cost for the remaining unsold items.

LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the ending inventory consists the initial cost for the remaining unsold items.

Average cost method: In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale.

Formula for weighted average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

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

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.

FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the ending inventory consists the recent cost for the remaining unsold items.

LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the ending inventory consists the initial cost for the remaining unsold items.

Average cost method: In Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale.

Formula for weighted average cost method:

Weighted-average Cost=Total Cost of Goods Available For SaleTotal Number of Units Available For Sale

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

Answer 8

(b)

To determine

The costing method which gives highest inventory, and highest cost of goods sold.

Answer 9

(b)

To determine

The costing method which gives highest inventory, and highest cost of goods sold.

Answer 10

(c)

To determine

To relate: The average-cost values for ending inventory, and cost of goods sold with ending inventory, and cost of goods for FIFO and LIFO.

Answer 11

(c)

To determine

To relate: The average-cost values for ending inventory, and cost of goods sold with ending inventory, and cost of goods for FIFO and LIFO.

Answer 12

(d)

To determine

To Explain: The reason for the average cost.

Answer 13

(d)

To determine

To Explain: The reason for the average cost.

Answer 14

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Answer 15

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Answer 17

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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The costing method which gives highest inventory, and highest cost of goods sold.

To relate: The average-cost values for ending inventory, and cost of goods sold with ending inventory, and cost of goods for FIFO and LIFO.

To Explain: The reason for the average cost.

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