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. 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. Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand. To Determine: The ending inventory under FIFO.

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Answer 1

Question

Chapter 6, Problem 6.9AP

(a) (1)

To determine

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.

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.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Determine: The ending inventory under FIFO.

(2)

To determine

The ending inventory under Moving-average.

(3)

To determine

The ending inventory under LIFO method.

(b)

To determine

The highest ending inventory costing method.

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Answer 2

Question

Chapter 6, Problem 6.9AP

(a) (1)

To determine

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.

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.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Determine: The ending inventory under FIFO.

(2)

To determine

The ending inventory under Moving-average.

(3)

To determine

The ending inventory under LIFO method.

(b)

To determine

The highest ending inventory costing method.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 6.9AP

(a) (1)

To determine

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.

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.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Determine: The ending inventory under FIFO.

(2)

To determine

The ending inventory under Moving-average.

(3)

To determine

The ending inventory under LIFO method.

(b)

To determine

The highest ending inventory costing method.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.9AP

(a) (1)

To determine

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.

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.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Determine: The ending inventory under FIFO.

(2)

To determine

The ending inventory under Moving-average.

(3)

To determine

The ending inventory under LIFO method.

(b)

To determine

The highest ending inventory costing method.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.9AP

(a) (1)

To determine

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.

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.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Determine: The ending inventory under FIFO.

(2)

To determine

The ending inventory under Moving-average.

(3)

To determine

The ending inventory under LIFO method.

(b)

To determine

The highest ending inventory costing method.

Answer 6

Chapter 6, Problem 6.9AP

(a) (1)

To determine

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.

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.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Determine: The ending inventory under FIFO.

Answer 7

Chapter 6, Problem 6.9AP

(a) (1)

To determine

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.

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.

Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.

To Determine: The ending inventory under FIFO.

Answer 8

(2)

To determine

The ending inventory under Moving-average.

Answer 9

(2)

To determine

The ending inventory under Moving-average.

Answer 10

(3)

To determine

The ending inventory under LIFO method.

Answer 11

(3)

To determine

The ending inventory under LIFO method.

Answer 12

(b)

To determine

The highest ending inventory costing method.

Answer 13

(b)

To determine

The highest ending inventory costing method.

Answer 14

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Answer 15

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Answer 16

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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...

Solution Summary: The author explains the perpetual inventory system, which shows the exact on-hand inventory at any time.

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The ending inventory under Moving-average.

The ending inventory under LIFO method.

The highest ending inventory costing method.

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