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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1. Record the proper journal entry for each transaction. 2. By the end of January, was manufacturing overhead overallocated or underallocated? By how much?

Rocky River Fast Lube does oil changes on vehicles in 15 minutes or less. The variable cost associated with each oil change is $12 (oil, filter, and 15 minutes of employee time). The fixed costs of running the shop are $8,000 each month (store manager salary, depreciation on shop and equipment, insurance, and property taxes). The shop has the capacity to perform 4,000 oil changes each month.

The formula to calculate the amount of manufacturing overhead to allocate to jobs is: Question content area bottom Part 1 A. predetermined overhead rate times the actual amount of the allocation base used by the specific job. B. predetermined overhead rate divided by the actual allocation base used by the specific job. C. predetermined overhead rate times the estimated amount of the allocation base used by the specific job. D. predetermined overhead rate times the actual manufacturing overhead used on the specific job.

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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