FIFO stands for first in first out, which means the inventory, which is purchased first, is the first one to be issued for production or is sold first. LIFO stands for last in first out, which means inventory, which is acquired last, is the first one to be issued for production or to be sold. The average cost method is based on average cost of goods available for sale. It is calculated by dividing cost of goods available for sale by total number of units available for sale. Given: Transactions of JA Company for the month of April is presented in the question. To compute: (a) To compute the inventory on April 30, using (1) LIFO and (2) average-cost, assuming that periodic inventory records are kept in units only.

Question

Travis Company purchased merchandise on account from a supplier for $13,200, terms 2/10, net 30 on December 26. Travis Company paid for the merchandise on December 31, within the discount period. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Question

Chapter 8, Problem 11E

To determine

Introduction: FIFO stands for first in first out, which means the inventory, which is purchased first, is the first one to be issued for production or is sold first.

LIFO stands for last in first out, which means inventory, which is acquired last, is the first one to be issued for production or to be sold.

The average cost method is based on average cost of goods available for sale. It is calculated by dividing cost of goods available for sale by total number of units available for sale.

Given: Transactions of JA Company for the month of April is presented in the question.

To compute:

(a)

To compute the inventory on April 30, using (1) LIFO and (2) average-cost, assuming that periodic inventory records are kept in units only.

To determine

(b)

To determine the inventory using (1) FIFO and (2) LIFO, assuming that perpetual inventory records are kept in dollars.

To determine

(c)

To determine the cost of goods sold.

To determine

(d)

To determine an inflationary period, which inventory method yields high net income.

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Travis Company purchased merchandise on account from a supplier for $13,200, terms 2/10, net 30 on December 26. Travis Company paid for the merchandise on December 31, within the discount period. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.

Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…

Answer 2

Question

Chapter 8, Problem 11E

To determine

Introduction: FIFO stands for first in first out, which means the inventory, which is purchased first, is the first one to be issued for production or is sold first.

LIFO stands for last in first out, which means inventory, which is acquired last, is the first one to be issued for production or to be sold.

The average cost method is based on average cost of goods available for sale. It is calculated by dividing cost of goods available for sale by total number of units available for sale.

Given: Transactions of JA Company for the month of April is presented in the question.

To compute:

(a)

To compute the inventory on April 30, using (1) LIFO and (2) average-cost, assuming that periodic inventory records are kept in units only.

To determine

(b)

To determine the inventory using (1) FIFO and (2) LIFO, assuming that perpetual inventory records are kept in dollars.

To determine

(c)

To determine the cost of goods sold.

To determine

(d)

To determine an inflationary period, which inventory method yields high net income.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 11E

To determine

Introduction: FIFO stands for first in first out, which means the inventory, which is purchased first, is the first one to be issued for production or is sold first.

LIFO stands for last in first out, which means inventory, which is acquired last, is the first one to be issued for production or to be sold.

The average cost method is based on average cost of goods available for sale. It is calculated by dividing cost of goods available for sale by total number of units available for sale.

Given: Transactions of JA Company for the month of April is presented in the question.

To compute:

(a)

To compute the inventory on April 30, using (1) LIFO and (2) average-cost, assuming that periodic inventory records are kept in units only.

To determine

(b)

To determine the inventory using (1) FIFO and (2) LIFO, assuming that perpetual inventory records are kept in dollars.

To determine

(c)

To determine the cost of goods sold.

To determine

(d)

To determine an inflationary period, which inventory method yields high net income.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 11E

To determine

Introduction: FIFO stands for first in first out, which means the inventory, which is purchased first, is the first one to be issued for production or is sold first.

LIFO stands for last in first out, which means inventory, which is acquired last, is the first one to be issued for production or to be sold.

The average cost method is based on average cost of goods available for sale. It is calculated by dividing cost of goods available for sale by total number of units available for sale.

Given: Transactions of JA Company for the month of April is presented in the question.

To compute:

(a)

To compute the inventory on April 30, using (1) LIFO and (2) average-cost, assuming that periodic inventory records are kept in units only.

To determine

(b)

To determine the inventory using (1) FIFO and (2) LIFO, assuming that perpetual inventory records are kept in dollars.

To determine

(c)

To determine the cost of goods sold.

To determine

(d)

To determine an inflationary period, which inventory method yields high net income.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 11E

To determine

Introduction: FIFO stands for first in first out, which means the inventory, which is purchased first, is the first one to be issued for production or is sold first.

LIFO stands for last in first out, which means inventory, which is acquired last, is the first one to be issued for production or to be sold.

The average cost method is based on average cost of goods available for sale. It is calculated by dividing cost of goods available for sale by total number of units available for sale.

Given: Transactions of JA Company for the month of April is presented in the question.

To compute:

(a)

To compute the inventory on April 30, using (1) LIFO and (2) average-cost, assuming that periodic inventory records are kept in units only.

To determine

(b)

To determine the inventory using (1) FIFO and (2) LIFO, assuming that perpetual inventory records are kept in dollars.

To determine

(c)

To determine the cost of goods sold.

To determine

(d)

To determine an inflationary period, which inventory method yields high net income.

Answer 6

Chapter 8, Problem 11E

To determine

Introduction: FIFO stands for first in first out, which means the inventory, which is purchased first, is the first one to be issued for production or is sold first.

LIFO stands for last in first out, which means inventory, which is acquired last, is the first one to be issued for production or to be sold.

The average cost method is based on average cost of goods available for sale. It is calculated by dividing cost of goods available for sale by total number of units available for sale.

Given: Transactions of JA Company for the month of April is presented in the question.

To compute:

(a)

To compute the inventory on April 30, using (1) LIFO and (2) average-cost, assuming that periodic inventory records are kept in units only.

Answer 7

Chapter 8, Problem 11E

To determine

Introduction: FIFO stands for first in first out, which means the inventory, which is purchased first, is the first one to be issued for production or is sold first.

LIFO stands for last in first out, which means inventory, which is acquired last, is the first one to be issued for production or to be sold.

The average cost method is based on average cost of goods available for sale. It is calculated by dividing cost of goods available for sale by total number of units available for sale.

Given: Transactions of JA Company for the month of April is presented in the question.

To compute:

(a)

To compute the inventory on April 30, using (1) LIFO and (2) average-cost, assuming that periodic inventory records are kept in units only.

Answer 8

To determine

(b)

To determine the inventory using (1) FIFO and (2) LIFO, assuming that perpetual inventory records are kept in dollars.

Answer 9

To determine

(b)

To determine the inventory using (1) FIFO and (2) LIFO, assuming that perpetual inventory records are kept in dollars.

Answer 10

To determine

(c)

To determine the cost of goods sold.

Answer 11

To determine

(c)

To determine the cost of goods sold.

Answer 12

To determine

(d)

To determine an inflationary period, which inventory method yields high net income.

Answer 13

To determine

(d)

To determine an inflationary period, which inventory method yields high net income.

Answer 14

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Ch. 8 - Prob. 1Q Ch. 8 - 2. Why should inventories be included in (a) a...Ch. 8 - 3. What is the difference between a perpetual...Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - Prob. 6Q Ch. 8 - Prob. 7Q Ch. 8 - Prob. 8Q Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

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(b)

To determine the inventory using (1) FIFO and (2) LIFO, assuming that perpetual inventory records are kept in dollars.

(c)

To determine the cost of goods sold.

(d)

To determine an inflationary period, which inventory method yields high net income.

Chapter 8 Solutions

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(b) To determine the inventory using (1) FIFO and (2) LIFO, assuming that perpetual inventory records are kept in dollars.

(c) To determine the cost of goods sold.

(d) To determine an inflationary period, which inventory method yields high net income.

Chapter 8 Solutions

(b)

To determine the inventory using (1) FIFO and (2) LIFO, assuming that perpetual inventory records are kept in dollars.

(c)

To determine the cost of goods sold.

(d)

To determine an inflationary period, which inventory method yields high net income.