(a) Introduction: The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method. The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased. To compute: Assume that the market value of the cups is $0.38 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

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Answer 1

Question

Chapter 6, Problem 70BPSB

To determine

(a)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.38 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

To determine

(b)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.12 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

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Answer 2

Question

Chapter 6, Problem 70BPSB

To determine

(a)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.38 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

To determine

(b)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.12 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 70BPSB

To determine

(a)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.38 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

To determine

(b)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.12 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 70BPSB

To determine

(a)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.38 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

To determine

(b)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.12 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 70BPSB

To determine

(a)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.38 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

To determine

(b)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.12 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

Answer 6

Chapter 6, Problem 70BPSB

To determine

(a)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.38 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

Answer 7

Chapter 6, Problem 70BPSB

To determine

(a)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.38 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

Answer 8

To determine

(b)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.12 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

Answer 9

To determine

(b)

Introduction:

The first in, first out (FIFO) method of inventory valuation is a cost stream supposition that the first products obtained are likewise the first merchandise sold. In many organizations, this presumption intently coordinates the genuine stream of merchandise, as is viewed as the most hypothetically right inventory valuation method.

The average cost method is an inventory costing method in which the cost of every thing in an inventory is determined on the basis of the average cost of every comparative great in the inventory. The average cost method is determined by partitioning the cost of products in inventory by the absolute number of things accessible available to be purchased.

To compute:

Assume that the market value of the cups is $0.12 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM.

Answer 10

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Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 6 - Prob. 1DQ Ch. 6 - Describe the types of inventories used by...Ch. 6 - Compare the flow of inventory costs between...Ch. 6 - What are the components of cost of goods available...Ch. 6 - How is cost of goods sold determined?Ch. 6 - How do the perpetual and periodic inventory...Ch. 6 - Why are perpetual inventory systems more expensive...Ch. 6 - Prob. 8DQ Ch. 6 - Prob. 9DQ Ch. 6 - Prob. 10DQ

Solution Summary: The author explains the first in, first out (FIFO) method of inventory valuation and the average cost method.

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