The amount of inventory using FIFO.

Question

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Answer 1

Question

Chapter 7, Problem 7.1COP

Requirement 1 (a)

To determine

The amount of inventory using FIFO.

Requirement 1 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$16)=$64$

Requirement 1 (b)

To determine

The amount of total assets using FIFO.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$64+$107)=$181$

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using FIFO.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$181$

Requirement 1 (d)

To determine

The amount of stockholders’ equity using FIFO.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($181−$36−$44)=$101$

Requirement 2 (a)

To determine

The amount of inventory using weighted average.

Requirement 2 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory using weighted average:

Step 1: Calculate the weighted average cost per unit.

$Weighted average unit cost}=(Cost of goods available for sale)(Total units available for sales)=($11×5)+($12×8)+($16×6)5+8+6=247$19=$13$

Step 2: Calculate the amount of inventory using weighted average.

$Amount of inventory = (Units on hand×Units cost)=(4×$13)=$52$

Requirement 1 (b)

To determine

The amount of total assets using weighted average.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets using weighted average:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$52+$107)=$169$

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using weighted average.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$169$

Requirement 1 (d)

To determine

The amount of stockholders’ equity using weighted average.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($169−$36−$44)=$89$

Requirement 3 (a)

To determine

The amount of inventory using LIFO.

Requirement 3 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$11)=$44$

Requirement 3 (b)

To determine

The amount of total assets using LIFO.

Requirement 3 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$44+$107)=$161$

Requirement 3 (c)

To determine

The amount of total liabilities and stockholders’ equity using LIFO.

Requirement 3 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$161$

Requirement 3 (d)

To determine

The amount of stockholders’ equity using LIFO.

Requirement 3 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($161−$36−$44)=$81$

Requirement 4 (i)

To determine

The current ratio using FIFO.

Requirement 4 (i)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$64$36=2.06$

Requirement 4 (ii)

To determine

The current ratio using weighted average.

Requirement 4 (ii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$52$36=1.72$

Requirement 4 (iii)

To determine

The current ratio using LIFO.

Requirement 4 (iii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$44$36=1.50$

The ratios are differing due to the inventory costing method assigned. Under FIFO method inventory is computed using the higher last–in costs, however, LIFO is using the lower first–in costs, and weighted average being an average of all costs.

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Answer 2

Question

Chapter 7, Problem 7.1COP

Requirement 1 (a)

To determine

The amount of inventory using FIFO.

Requirement 1 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$16)=$64$

Requirement 1 (b)

To determine

The amount of total assets using FIFO.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$64+$107)=$181$

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using FIFO.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$181$

Requirement 1 (d)

To determine

The amount of stockholders’ equity using FIFO.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($181−$36−$44)=$101$

Requirement 2 (a)

To determine

The amount of inventory using weighted average.

Requirement 2 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory using weighted average:

Step 1: Calculate the weighted average cost per unit.

$Weighted average unit cost}=(Cost of goods available for sale)(Total units available for sales)=($11×5)+($12×8)+($16×6)5+8+6=247$19=$13$

Step 2: Calculate the amount of inventory using weighted average.

$Amount of inventory = (Units on hand×Units cost)=(4×$13)=$52$

Requirement 1 (b)

To determine

The amount of total assets using weighted average.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets using weighted average:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$52+$107)=$169$

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using weighted average.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$169$

Requirement 1 (d)

To determine

The amount of stockholders’ equity using weighted average.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($169−$36−$44)=$89$

Requirement 3 (a)

To determine

The amount of inventory using LIFO.

Requirement 3 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$11)=$44$

Requirement 3 (b)

To determine

The amount of total assets using LIFO.

Requirement 3 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$44+$107)=$161$

Requirement 3 (c)

To determine

The amount of total liabilities and stockholders’ equity using LIFO.

Requirement 3 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$161$

Requirement 3 (d)

To determine

The amount of stockholders’ equity using LIFO.

Requirement 3 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($161−$36−$44)=$81$

Requirement 4 (i)

To determine

The current ratio using FIFO.

Requirement 4 (i)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$64$36=2.06$

Requirement 4 (ii)

To determine

The current ratio using weighted average.

Requirement 4 (ii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$52$36=1.72$

Requirement 4 (iii)

To determine

The current ratio using LIFO.

Requirement 4 (iii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$44$36=1.50$

The ratios are differing due to the inventory costing method assigned. Under FIFO method inventory is computed using the higher last–in costs, however, LIFO is using the lower first–in costs, and weighted average being an average of all costs.

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Answer 3

Question

Chapter 7, Problem 7.1COP

Requirement 1 (a)

To determine

The amount of inventory using FIFO.

Requirement 1 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$16)=$64$

Requirement 1 (b)

To determine

The amount of total assets using FIFO.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$64+$107)=$181$

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using FIFO.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$181$

Requirement 1 (d)

To determine

The amount of stockholders’ equity using FIFO.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($181−$36−$44)=$101$

Requirement 2 (a)

To determine

The amount of inventory using weighted average.

Requirement 2 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory using weighted average:

Step 1: Calculate the weighted average cost per unit.

$Weighted average unit cost}=(Cost of goods available for sale)(Total units available for sales)=($11×5)+($12×8)+($16×6)5+8+6=247$19=$13$

Step 2: Calculate the amount of inventory using weighted average.

$Amount of inventory = (Units on hand×Units cost)=(4×$13)=$52$

Requirement 1 (b)

To determine

The amount of total assets using weighted average.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets using weighted average:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$52+$107)=$169$

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using weighted average.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$169$

Requirement 1 (d)

To determine

The amount of stockholders’ equity using weighted average.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($169−$36−$44)=$89$

Requirement 3 (a)

To determine

The amount of inventory using LIFO.

Requirement 3 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$11)=$44$

Requirement 3 (b)

To determine

The amount of total assets using LIFO.

Requirement 3 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$44+$107)=$161$

Requirement 3 (c)

To determine

The amount of total liabilities and stockholders’ equity using LIFO.

Requirement 3 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$161$

Requirement 3 (d)

To determine

The amount of stockholders’ equity using LIFO.

Requirement 3 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($161−$36−$44)=$81$

Requirement 4 (i)

To determine

The current ratio using FIFO.

Requirement 4 (i)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$64$36=2.06$

Requirement 4 (ii)

To determine

The current ratio using weighted average.

Requirement 4 (ii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$52$36=1.72$

Requirement 4 (iii)

To determine

The current ratio using LIFO.

Requirement 4 (iii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$44$36=1.50$

The ratios are differing due to the inventory costing method assigned. Under FIFO method inventory is computed using the higher last–in costs, however, LIFO is using the lower first–in costs, and weighted average being an average of all costs.

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Answer 4

Question

Chapter 7, Problem 7.1COP

Requirement 1 (a)

To determine

The amount of inventory using FIFO.

Requirement 1 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$16)=$64$

Requirement 1 (b)

To determine

The amount of total assets using FIFO.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$64+$107)=$181$

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using FIFO.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$181$

Requirement 1 (d)

To determine

The amount of stockholders’ equity using FIFO.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($181−$36−$44)=$101$

Requirement 2 (a)

To determine

The amount of inventory using weighted average.

Requirement 2 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory using weighted average:

Step 1: Calculate the weighted average cost per unit.

$Weighted average unit cost}=(Cost of goods available for sale)(Total units available for sales)=($11×5)+($12×8)+($16×6)5+8+6=247$19=$13$

Step 2: Calculate the amount of inventory using weighted average.

$Amount of inventory = (Units on hand×Units cost)=(4×$13)=$52$

Requirement 1 (b)

To determine

The amount of total assets using weighted average.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets using weighted average:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$52+$107)=$169$

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using weighted average.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$169$

Requirement 1 (d)

To determine

The amount of stockholders’ equity using weighted average.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($169−$36−$44)=$89$

Requirement 3 (a)

To determine

The amount of inventory using LIFO.

Requirement 3 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$11)=$44$

Requirement 3 (b)

To determine

The amount of total assets using LIFO.

Requirement 3 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$44+$107)=$161$

Requirement 3 (c)

To determine

The amount of total liabilities and stockholders’ equity using LIFO.

Requirement 3 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$161$

Requirement 3 (d)

To determine

The amount of stockholders’ equity using LIFO.

Requirement 3 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($161−$36−$44)=$81$

Requirement 4 (i)

To determine

The current ratio using FIFO.

Requirement 4 (i)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$64$36=2.06$

Requirement 4 (ii)

To determine

The current ratio using weighted average.

Requirement 4 (ii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$52$36=1.72$

Requirement 4 (iii)

To determine

The current ratio using LIFO.

Requirement 4 (iii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$44$36=1.50$

The ratios are differing due to the inventory costing method assigned. Under FIFO method inventory is computed using the higher last–in costs, however, LIFO is using the lower first–in costs, and weighted average being an average of all costs.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 7.1COP

Requirement 1 (a)

To determine

The amount of inventory using FIFO.

Requirement 1 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$16)=$64$

Requirement 1 (b)

To determine

The amount of total assets using FIFO.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$64+$107)=$181$

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using FIFO.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$181$

Requirement 1 (d)

To determine

The amount of stockholders’ equity using FIFO.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($181−$36−$44)=$101$

Requirement 2 (a)

To determine

The amount of inventory using weighted average.

Requirement 2 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory using weighted average:

Step 1: Calculate the weighted average cost per unit.

$Weighted average unit cost}=(Cost of goods available for sale)(Total units available for sales)=($11×5)+($12×8)+($16×6)5+8+6=247$19=$13$

Step 2: Calculate the amount of inventory using weighted average.

$Amount of inventory = (Units on hand×Units cost)=(4×$13)=$52$

Requirement 1 (b)

To determine

The amount of total assets using weighted average.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets using weighted average:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$52+$107)=$169$

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using weighted average.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$169$

Requirement 1 (d)

To determine

The amount of stockholders’ equity using weighted average.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($169−$36−$44)=$89$

Requirement 3 (a)

To determine

The amount of inventory using LIFO.

Requirement 3 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$11)=$44$

Requirement 3 (b)

To determine

The amount of total assets using LIFO.

Requirement 3 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$44+$107)=$161$

Requirement 3 (c)

To determine

The amount of total liabilities and stockholders’ equity using LIFO.

Requirement 3 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$161$

Requirement 3 (d)

To determine

The amount of stockholders’ equity using LIFO.

Requirement 3 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($161−$36−$44)=$81$

Requirement 4 (i)

To determine

The current ratio using FIFO.

Requirement 4 (i)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$64$36=2.06$

Requirement 4 (ii)

To determine

The current ratio using weighted average.

Requirement 4 (ii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$52$36=1.72$

Requirement 4 (iii)

To determine

The current ratio using LIFO.

Requirement 4 (iii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$44$36=1.50$

The ratios are differing due to the inventory costing method assigned. Under FIFO method inventory is computed using the higher last–in costs, however, LIFO is using the lower first–in costs, and weighted average being an average of all costs.

Answer 6

Chapter 7, Problem 7.1COP

Requirement 1 (a)

To determine

The amount of inventory using FIFO.

Requirement 1 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$16)=$64$

Answer 7

Chapter 7, Problem 7.1COP

Requirement 1 (a)

To determine

The amount of inventory using FIFO.

Answer 8

Requirement 1 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$16)=$64$

Answer 9

Requirement 1 (a)

Expert Solution

Answer 10

Requirement 1 (a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Requirement 1 (b)

To determine

The amount of total assets using FIFO.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$64+$107)=$181$

Answer 13

Requirement 1 (b)

To determine

The amount of total assets using FIFO.

Answer 14

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$64+$107)=$181$

Answer 15

Requirement 1 (b)

Expert Solution

Answer 16

Requirement 1 (b)

Expert Solution

Answer 17

Expert Solution

Answer 18

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using FIFO.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$181$

Answer 19

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using FIFO.

Answer 20

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$181$

Answer 21

Requirement 1 (c)

Expert Solution

Answer 22

Requirement 1 (c)

Expert Solution

Answer 23

Expert Solution

Answer 24

Requirement 1 (d)

To determine

The amount of stockholders’ equity using FIFO.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($181−$36−$44)=$101$

Answer 25

Requirement 1 (d)

To determine

The amount of stockholders’ equity using FIFO.

Answer 26

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($181−$36−$44)=$101$

Answer 27

Requirement 1 (d)

Expert Solution

Answer 28

Requirement 1 (d)

Expert Solution

Answer 29

Expert Solution

Answer 30

Requirement 2 (a)

To determine

The amount of inventory using weighted average.

Requirement 2 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory using weighted average:

Step 1: Calculate the weighted average cost per unit.

$Weighted average unit cost}=(Cost of goods available for sale)(Total units available for sales)=($11×5)+($12×8)+($16×6)5+8+6=247$19=$13$

Step 2: Calculate the amount of inventory using weighted average.

$Amount of inventory = (Units on hand×Units cost)=(4×$13)=$52$

Answer 31

Requirement 2 (a)

To determine

The amount of inventory using weighted average.

Answer 32

Requirement 2 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory using weighted average:

Step 1: Calculate the weighted average cost per unit.

$Weighted average unit cost}=(Cost of goods available for sale)(Total units available for sales)=($11×5)+($12×8)+($16×6)5+8+6=247$19=$13$

Step 2: Calculate the amount of inventory using weighted average.

$Amount of inventory = (Units on hand×Units cost)=(4×$13)=$52$

Answer 33

Requirement 2 (a)

Expert Solution

Answer 34

Requirement 2 (a)

Expert Solution

Answer 35

Expert Solution

Answer 36

Requirement 1 (b)

To determine

The amount of total assets using weighted average.

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets using weighted average:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$52+$107)=$169$

Answer 37

Requirement 1 (b)

To determine

The amount of total assets using weighted average.

Answer 38

Requirement 1 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets using weighted average:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$52+$107)=$169$

Answer 39

Requirement 1 (b)

Expert Solution

Answer 40

Requirement 1 (b)

Expert Solution

Answer 41

Expert Solution

Answer 42

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using weighted average.

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$169$

Answer 43

Requirement 1 (c)

To determine

The amount of total liabilities and stockholders’ equity using weighted average.

Answer 44

Requirement 1 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$169$

Answer 45

Requirement 1 (c)

Expert Solution

Answer 46

Requirement 1 (c)

Expert Solution

Answer 47

Expert Solution

Answer 48

Requirement 1 (d)

To determine

The amount of stockholders’ equity using weighted average.

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($169−$36−$44)=$89$

Answer 49

Requirement 1 (d)

To determine

The amount of stockholders’ equity using weighted average.

Answer 50

Requirement 1 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($169−$36−$44)=$89$

Answer 51

Requirement 1 (d)

Expert Solution

Answer 52

Requirement 1 (d)

Expert Solution

Answer 53

Expert Solution

Answer 54

Requirement 3 (a)

To determine

The amount of inventory using LIFO.

Requirement 3 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$11)=$44$

Answer 55

Requirement 3 (a)

To determine

The amount of inventory using LIFO.

Answer 56

Requirement 3 (a)

Expert Solution

Explanation of Solution

Calculate the amount of inventory:

$Amount of inventory = (Units on hand×Units cost)=(4×$11)=$44$

Answer 57

Requirement 3 (a)

Expert Solution

Answer 58

Requirement 3 (a)

Expert Solution

Answer 59

Expert Solution

Answer 60

Requirement 3 (b)

To determine

The amount of total assets using LIFO.

Requirement 3 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$44+$107)=$161$

Answer 61

Requirement 3 (b)

To determine

The amount of total assets using LIFO.

Answer 62

Requirement 3 (b)

Expert Solution

Explanation of Solution

Calculate the amount of total assets:

$Amount of total assets = (Current assets other than inventory + Inventory + Other(non current assets))=($10+$44+$107)=$161$

Answer 63

Requirement 3 (b)

Expert Solution

Answer 64

Requirement 3 (b)

Expert Solution

Answer 65

Expert Solution

Answer 66

Requirement 3 (c)

To determine

The amount of total liabilities and stockholders’ equity using LIFO.

Requirement 3 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$161$

Answer 67

Requirement 3 (c)

To determine

The amount of total liabilities and stockholders’ equity using LIFO.

Answer 68

Requirement 3 (c)

Expert Solution

Explanation of Solution

Calculate the amount of total liabilities and stockholders’ equity:

$Total liabilities andstockholders’ equity}=Total assets=$161$

Answer 69

Requirement 3 (c)

Expert Solution

Answer 70

Requirement 3 (c)

Expert Solution

Answer 71

Expert Solution

Answer 72

Requirement 3 (d)

To determine

The amount of stockholders’ equity using LIFO.

Requirement 3 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($161−$36−$44)=$81$

Answer 73

Requirement 3 (d)

To determine

The amount of stockholders’ equity using LIFO.

Answer 74

Requirement 3 (d)

Expert Solution

Explanation of Solution

Calculate the amount of stockholders’ equity:

$Stockholders’ equity = (Total liabilities and stockholders’ equity−Current liabilities−Other(non)current liabilities)= ($161−$36−$44)=$81$

Answer 75

Requirement 3 (d)

Expert Solution

Answer 76

Requirement 3 (d)

Expert Solution

Answer 77

Expert Solution

Answer 78

Requirement 4 (i)

To determine

The current ratio using FIFO.

Requirement 4 (i)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$64$36=2.06$

Answer 79

Requirement 4 (i)

To determine

The current ratio using FIFO.

Answer 80

Requirement 4 (i)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$64$36=2.06$

Answer 81

Requirement 4 (i)

Expert Solution

Answer 82

Requirement 4 (i)

Expert Solution

Answer 83

Expert Solution

Answer 84

Requirement 4 (ii)

To determine

The current ratio using weighted average.

Requirement 4 (ii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$52$36=1.72$

Answer 85

Requirement 4 (ii)

To determine

The current ratio using weighted average.

Answer 86

Requirement 4 (ii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$52$36=1.72$

Answer 87

Requirement 4 (ii)

Expert Solution

Answer 88

Requirement 4 (ii)

Expert Solution

Answer 89

Expert Solution

Answer 90

Requirement 4 (iii)

To determine

The current ratio using LIFO.

Requirement 4 (iii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$44$36=1.50$

The ratios are differing due to the inventory costing method assigned. Under FIFO method inventory is computed using the higher last–in costs, however, LIFO is using the lower first–in costs, and weighted average being an average of all costs.

Answer 91

Requirement 4 (iii)

To determine

The current ratio using LIFO.

Answer 92

Requirement 4 (iii)

Expert Solution

Explanation of Solution

Calculate the current ratio:

$Current ratio=Current assetsCurrent liabilities=$10+$44$36=1.50$

The ratios are differing due to the inventory costing method assigned. Under FIFO method inventory is computed using the higher last–in costs, however, LIFO is using the lower first–in costs, and weighted average being an average of all costs.

Answer 93

Requirement 4 (iii)

Expert Solution

Answer 94

Requirement 4 (iii)

Expert Solution

Answer 95

Expert Solution

Answer 96

Ch. 7 - What are three goals of inventory management?Ch. 7 - Describe the specific types of inventory reported...Ch. 7 - The chapter discussed four inventory costing...Ch. 7 - Which inventory cost flow method is most similar...Ch. 7 - Where possible, the inventory costing method...Ch. 7 - Contrast the effects of LIFO versus FIFO on ending...Ch. 7 - Contrast the income statement effect of LIFO...Ch. 7 - Several managers in your company are experiencing...Ch. 7 - Explain briefly the application of the LCM rule to...Ch. 7 - Prob. 10Q

The amount of inventory using FIFO.

Videos

The amount of inventory using FIFO.

Explanation of Solution

The amount of total assets using FIFO.

Explanation of Solution

The amount of total liabilities and stockholders’ equity using FIFO.

Explanation of Solution

The amount of stockholders’ equity using FIFO.

Explanation of Solution

The amount of inventory using weighted average.

Explanation of Solution

The amount of total assets using weighted average.

Explanation of Solution

The amount of total liabilities and stockholders’ equity using weighted average.

Explanation of Solution

The amount of stockholders’ equity using weighted average.

Explanation of Solution

The amount of inventory using LIFO.

Explanation of Solution

The amount of total assets using LIFO.

Explanation of Solution

The amount of total liabilities and stockholders’ equity using LIFO.

Explanation of Solution

The amount of stockholders’ equity using LIFO.

Explanation of Solution

The current ratio using FIFO.

Explanation of Solution

The current ratio using weighted average.

Explanation of Solution

The current ratio using LIFO.

Explanation of Solution

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