Concept explainers
Videos
Concept Introduction:
Periodic Inventory System: The periodic inventory system records and updates the inventory at the end of a particular period. The inventory balance is not updated after each transaction and it is updated periodically.
Methods of
• Specific identification method: Under this method the cost of goods sold and ending inventory units are identifiable and the cost is calculated accurately for each unit sold and in the inventory.
• Weighted Average method: Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit.
• FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased.
• LIFO method: LIFO Stands for Last In First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased.
Requirement (a):
To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory FIFO method.
Requirement (b):
To determine: Cost of ending inventory and Cost of goods sold using the periodic inventory LIFO method.
Requirement (c):
To determine: Gross Profit using both FIFO and LIFO periodic inventory methods:
Trending nowThis is a popular solution!
Chapter 6 Solutions
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
- TUtor of general account accept it.arrow_forwardA firm's balance sheet shows the following: Assets $ 5,00,000 Liabilities $ 6,00,000 Shareholder's Capital $ 50,000 Owner's Equity ($1,00,000) The Retained Profit/Loss for the firm is: a. ($50,000) b. $100,000 c. $150,000 d. ($150,000)arrow_forwardKindly help me with general accounting questionarrow_forward
- What is the target price to obtain a 15% profit margin on sales??arrow_forwardDon't use ai given answer accounting questionsarrow_forwardIf during the year total assets increase by $83,000 and total liabilities decreased by $20,000, by how much did owners equity increase/ decrease? General Account.arrow_forward
- Hi teacher please help me this question general accountingarrow_forwardChicotti Cocoa Chiles has 3,000 units in beginning work in process, 30% complete as to conversion costs, 25,000 units transferred out to finished goods, and 1,000 units in ending work in process 20% complete as to conversion costs. The beginning and ending inventory is fully complete as to materials costs. How much are equivalent units for conversion costs if the weighted average method is used?arrow_forwardWhat is the consumer surplus for swimmers ?? General accountingarrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education