Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time. Inventory cost flow: It refers to the flow (movement) of inventory when it is purchased or sell by the business organization. The various inventory cost flow methods are: First-in, first-out (FIFO) Last in, first-out (LIFO) Average-cost FIFO method: In FIFO method, those goods are sold first which are purchased first by the business organization. LIFO method: In LIFO method, those goods are sold first which are purchased in last by the business organization Average-cost method: In average-cost method, the value of inventory is calculated by the average of cost of goods sold which are available for the sale purpose for that period. To determine: The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under LIFO

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Answer 1

Question

Chapter 6, Problem 6.8AP

(a)

(1)

To determine

Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Inventory cost flow: It refers to the flow (movement) of inventory when it is purchased or sell by the business organization.

The various inventory cost flow methods are:

First-in, first-out (FIFO)

Last in, first-out (LIFO)

Average-cost

FIFO method: In FIFO method, those goods are sold first which are purchased first by the business organization.

LIFO method: In LIFO method, those goods are sold first which are purchased in last by the business organization

Average-cost method: In average-cost method, the value of inventory is calculated by the average of cost of goods sold which are available for the sale purpose for that period.

To determine: The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under LIFO

(2)

To determine

(a) The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under FIFO

(3)

To determine

The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under moving-average cost

(b)

To determine

Compare results calculated under all cost-flow methods.

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Marino Snacks Co. had its highest total cost of $84,000 in July and its lowest total cost of $60,000 in November. The company produces a single product. Production volume was 14,000 units in July and 9,000 units in November. What is the fixed cost per month? Answer

I need help with this financial accounting question using the proper financial approach.

E4-8 Plevin Company ended its fiscal year on July 31, 2014. The company's adjusted trial balance as of the end of its fiscal year is shown below. PLEVIN COMPANY Adjusted Trial Balance July 31, 2014 (b) Tota Journal entries, closing (LO 2, No. Account Titles Debit Credit 101 Cash $ 9,840 112 Accounts Receivable 8,780 157 Equipment 15,900 158 Accumulated Depreciation-Equip. $ 7,400 201 Accounts Payable 4,220 208 Unearned Rent Revenue 1,800 301 Owner's Capital 45,200 306 Owner's Drawings 16,000 400 Service Revenue 64,000 6,500 429 Rent Revenue 711 Depreciation Expense 8,000 726 Salaries and Wages Expense 55,700 732 Utilities Expense 14,900 $129,120 $129,120 Instructions (a) Prepare the closing entries using page J15. (b) Post to Owner's Capital and No. 350 Income Summary accounts. (Use the three-column form.) (c) Prepare a post-closing trial balance at July 31.

Answer 2

Question

Chapter 6, Problem 6.8AP

(a)

(1)

To determine

Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Inventory cost flow: It refers to the flow (movement) of inventory when it is purchased or sell by the business organization.

The various inventory cost flow methods are:

First-in, first-out (FIFO)

Last in, first-out (LIFO)

Average-cost

FIFO method: In FIFO method, those goods are sold first which are purchased first by the business organization.

LIFO method: In LIFO method, those goods are sold first which are purchased in last by the business organization

Average-cost method: In average-cost method, the value of inventory is calculated by the average of cost of goods sold which are available for the sale purpose for that period.

To determine: The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under LIFO

(2)

To determine

(a) The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under FIFO

(3)

To determine

The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under moving-average cost

(b)

To determine

Compare results calculated under all cost-flow methods.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 6, Problem 6.8AP

(a)

(1)

To determine

Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Inventory cost flow: It refers to the flow (movement) of inventory when it is purchased or sell by the business organization.

The various inventory cost flow methods are:

First-in, first-out (FIFO)

Last in, first-out (LIFO)

Average-cost

FIFO method: In FIFO method, those goods are sold first which are purchased first by the business organization.

LIFO method: In LIFO method, those goods are sold first which are purchased in last by the business organization

Average-cost method: In average-cost method, the value of inventory is calculated by the average of cost of goods sold which are available for the sale purpose for that period.

To determine: The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under LIFO

(2)

To determine

(a) The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under FIFO

(3)

To determine

The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under moving-average cost

(b)

To determine

Compare results calculated under all cost-flow methods.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 6.8AP

(a)

(1)

To determine

Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Inventory cost flow: It refers to the flow (movement) of inventory when it is purchased or sell by the business organization.

The various inventory cost flow methods are:

First-in, first-out (FIFO)

Last in, first-out (LIFO)

Average-cost

FIFO method: In FIFO method, those goods are sold first which are purchased first by the business organization.

LIFO method: In LIFO method, those goods are sold first which are purchased in last by the business organization

Average-cost method: In average-cost method, the value of inventory is calculated by the average of cost of goods sold which are available for the sale purpose for that period.

To determine: The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under LIFO

(2)

To determine

(a) The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under FIFO

(3)

To determine

The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under moving-average cost

(b)

To determine

Compare results calculated under all cost-flow methods.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 6.8AP

(a)

(1)

To determine

Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Inventory cost flow: It refers to the flow (movement) of inventory when it is purchased or sell by the business organization.

The various inventory cost flow methods are:

First-in, first-out (FIFO)

Last in, first-out (LIFO)

Average-cost

FIFO method: In FIFO method, those goods are sold first which are purchased first by the business organization.

LIFO method: In LIFO method, those goods are sold first which are purchased in last by the business organization

Average-cost method: In average-cost method, the value of inventory is calculated by the average of cost of goods sold which are available for the sale purpose for that period.

To determine: The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under LIFO

(2)

To determine

(a) The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under FIFO

(3)

To determine

The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under moving-average cost

(b)

To determine

Compare results calculated under all cost-flow methods.

Answer 6

Chapter 6, Problem 6.8AP

(a)

(1)

To determine

Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Inventory cost flow: It refers to the flow (movement) of inventory when it is purchased or sell by the business organization.

The various inventory cost flow methods are:

First-in, first-out (FIFO)

Last in, first-out (LIFO)

Average-cost

FIFO method: In FIFO method, those goods are sold first which are purchased first by the business organization.

LIFO method: In LIFO method, those goods are sold first which are purchased in last by the business organization

Average-cost method: In average-cost method, the value of inventory is calculated by the average of cost of goods sold which are available for the sale purpose for that period.

To determine: The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under LIFO

Answer 7

Chapter 6, Problem 6.8AP

(a)

(1)

To determine

Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Inventory cost flow: It refers to the flow (movement) of inventory when it is purchased or sell by the business organization.

The various inventory cost flow methods are:

First-in, first-out (FIFO)

Last in, first-out (LIFO)

Average-cost

FIFO method: In FIFO method, those goods are sold first which are purchased first by the business organization.

LIFO method: In LIFO method, those goods are sold first which are purchased in last by the business organization

Average-cost method: In average-cost method, the value of inventory is calculated by the average of cost of goods sold which are available for the sale purpose for that period.

To determine: The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under LIFO

Answer 8

(2)

To determine

(a) The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under FIFO

Answer 9

(2)

To determine

(a) The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under FIFO

Answer 10

(3)

To determine

The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under moving-average cost

Answer 11

(3)

To determine

The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under moving-average cost

Answer 12

(b)

To determine

Compare results calculated under all cost-flow methods.

Answer 13

(b)

To determine

Compare results calculated under all cost-flow methods.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 6 - Prob. 1Q Ch. 6 - Prob. 2Q Ch. 6 - Prob. 3Q Ch. 6 - Prob. 4Q Ch. 6 - Prob. 5Q Ch. 6 - 6. Explain the difference between the terms FOB...Ch. 6 - Prob. 7Q Ch. 6 - Prob. 8Q Ch. 6 - 9. “The selection of an inventory cost flow method...Ch. 6 - Prob. 10Q

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(a) The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under FIFO

The cost of (i) goods sold, (ii) ending inventory, and (iii) gross profit under moving-average cost

Compare results calculated under all cost-flow methods.

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