LooseLeaf Intermediate Accounting w/ Annual Report; Connect Access Card
8th Edition
ISBN: 9781259542848
Author: J. David Spiceland
Publisher: McGraw-Hill Education
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Chapter 8, Problem 8.6BE
To determine
Periodic Inventory System:
It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.
- In First-in-First-Out method, the costs of initial purchased items are sold first. The value of the ending inventory consists of the recent purchased items.
- In Weighted-Average Cost Method the cost of inventory is priced at the average rate of the goods available for sale. Following is the mathematical representation:
To Calculate: The ending inventory and cost of goods sold for January using FIFO method.
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Maharaj Garage & Car Supplies sells a variety of automobile cleaning gadgets including a variety of hand
vacuums. The business began the first quarter (January to March) of 2024 with 20 (Mash up Dirt) deep clean,
cordless vacuums at a total cost of $126,800.
During the quarter, the business completed the following transactions relating to the "Mash up Dirt" brand.
January 8
January 31
February 4
February 10
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March 4
March 10
105 vacuums were purchased at a cost of $6,022 each. In addition, the business paid a freight
charge of $518 cash on each vacuum to have the inventory shipped from the point of
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The sales for January were 85 vacuums which yielded total sales revenue of $768,400. (25 of
these units were sold on account to Mandys Cleaning Supplies, a longstanding customer)
A new batch of 65 vacuums was purchased at a total cost of $449,800
8 of the vacuums purchased on February 4 were returned to the supplier, as they were either
not of…
Chapter 8 Solutions
LooseLeaf Intermediate Accounting w/ Annual Report; Connect Access Card
Ch. 8 - Describe the three types of inventory of a...Ch. 8 - What is the main difference between a perpetual...Ch. 8 - The Cloud Company employs a perpetual inventory...Ch. 8 - Q 8–4
The Bockner Company shipped merchandise to...Ch. 8 - What is a consignment arrangement? Explain the...Ch. 8 - Prob. 8.6QCh. 8 - The Esquire Company employs a periodic inventory...Ch. 8 - Prob. 8.8QCh. 8 - Its common in the electronics industry for unit...Ch. 8 - Explain why proponents of LIFO argue that it...
Ch. 8 - Prob. 8.11QCh. 8 - Describe the ratios used by financial analysts to...Ch. 8 - Prob. 8.13QCh. 8 - Prob. 8.14QCh. 8 - The Austin Company uses the dollar-value LIFO...Ch. 8 - Identify any differences between U.S. GAAP and...Ch. 8 - Determining ending inventory; periodic system ...Ch. 8 - Prob. 8.2BECh. 8 - Prob. 8.3BECh. 8 - Prob. 8.4BECh. 8 - Prob. 8.5BECh. 8 - Prob. 8.6BECh. 8 - Prob. 8.7BECh. 8 - Prob. 8.8BECh. 8 - LIFO method LO84 AAA Hardware uses the LIFO...Ch. 8 - Prob. 8.10BECh. 8 - Prob. 8.11BECh. 8 - Prob. 8.12BECh. 8 - Prob. 8.13BECh. 8 - Prob. 8.1ECh. 8 - Prob. 8.2ECh. 8 - Prob. 8.3ECh. 8 - Prob. 8.4ECh. 8 - Prob. 8.6ECh. 8 - Prob. 8.7ECh. 8 - Physical quantities and costs included in...Ch. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Prob. 8.11ECh. 8 - FASB codification research LO82, LO83 Access the...Ch. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - E 8–19
LIFO liquidation
LO8–1, LO8–4, LO8–6
The...Ch. 8 - Prob. 8.23ECh. 8 - Prob. 8.24ECh. 8 - Prob. 8.25ECh. 8 - Concepts; terminology LO81 through LO85 Listed...Ch. 8 - Prob. 1CPACh. 8 - Prob. 2CPACh. 8 - Prob. 3CPACh. 8 - Prob. 4CPACh. 8 - Prob. 5CPACh. 8 - Prob. 6CPACh. 8 - Prob. 7CPACh. 8 - Prob. 8CPACh. 8 - Prob. 1CMACh. 8 - Prob. 2CMACh. 8 - Prob. 3CMACh. 8 - Prob. 8.1PCh. 8 - P 8–2
Items to be included in inventory
LO8–2
The...Ch. 8 - Prob. 8.4PCh. 8 - Prob. 8.5PCh. 8 - Prob. 8.7PCh. 8 - Prob. 8.8PCh. 8 - Prob. 8.9PCh. 8 - Prob. 8.10PCh. 8 - Prob. 8.11PCh. 8 - Prob. 8.12PCh. 8 - Prob. 8.13PCh. 8 - Prob. 8.14PCh. 8 - Prob. 8.15PCh. 8 - Prob. 8.1BYPCh. 8 - Real World Case 82 Physical quantities and costs...Ch. 8 - Prob. 8.3BYPCh. 8 - Prob. 8.4BYPCh. 8 - Prob. 8.5BYPCh. 8 - Prob. 8.6BYPCh. 8 - Prob. 8.7BYPCh. 8 - Prob. 8.8BYPCh. 8 - Real World Case 89 Effects of inventory valuation...Ch. 8 - Prob. 8.10BYPCh. 8 - Research Case 8–11
FASB codification; locate and...Ch. 8 - Analysis Case 8–13
Costs included in inventory;...Ch. 8 - Prob. 1AFKC
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