Supplemental LIFO disclosures: These disclosures are used to convert the inventories and the cost of goods sold amounts under LIFO to FIFO. FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period. LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory. To calculate: the amount that would be reported for cost of goods sold had Company C used the FIFO inventory method for its entire inventory.

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Answer 1

Question

Chapter 8, Problem 8.8P

1.

To determine

Supplemental LIFO disclosures: These disclosures are used to convert the inventories and the cost of goods sold amounts under LIFO to FIFO.

FIFO:

Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO:

Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

To calculate: the amount that would be reported for cost of goods sold had Company C used the FIFO inventory method for its entire inventory.

2.

To determine

To explain: The reason as to why the information contained in the disclosure note be useful to a financial analyst.

3.

To determine

The higher (lower) amount of retained earnings at the end of 2013.

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Answer 2

Question

Chapter 8, Problem 8.8P

1.

To determine

Supplemental LIFO disclosures: These disclosures are used to convert the inventories and the cost of goods sold amounts under LIFO to FIFO.

FIFO:

Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO:

Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

To calculate: the amount that would be reported for cost of goods sold had Company C used the FIFO inventory method for its entire inventory.

2.

To determine

To explain: The reason as to why the information contained in the disclosure note be useful to a financial analyst.

3.

To determine

The higher (lower) amount of retained earnings at the end of 2013.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 8, Problem 8.8P

1.

To determine

Supplemental LIFO disclosures: These disclosures are used to convert the inventories and the cost of goods sold amounts under LIFO to FIFO.

FIFO:

Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO:

Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

To calculate: the amount that would be reported for cost of goods sold had Company C used the FIFO inventory method for its entire inventory.

2.

To determine

To explain: The reason as to why the information contained in the disclosure note be useful to a financial analyst.

3.

To determine

The higher (lower) amount of retained earnings at the end of 2013.

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Answer 4

Question

Chapter 8, Problem 8.8P

1.

To determine

Supplemental LIFO disclosures: These disclosures are used to convert the inventories and the cost of goods sold amounts under LIFO to FIFO.

FIFO:

Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO:

Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

To calculate: the amount that would be reported for cost of goods sold had Company C used the FIFO inventory method for its entire inventory.

2.

To determine

To explain: The reason as to why the information contained in the disclosure note be useful to a financial analyst.

3.

To determine

The higher (lower) amount of retained earnings at the end of 2013.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.8P

1.

To determine

Supplemental LIFO disclosures: These disclosures are used to convert the inventories and the cost of goods sold amounts under LIFO to FIFO.

FIFO:

Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO:

Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

To calculate: the amount that would be reported for cost of goods sold had Company C used the FIFO inventory method for its entire inventory.

2.

To determine

To explain: The reason as to why the information contained in the disclosure note be useful to a financial analyst.

3.

To determine

The higher (lower) amount of retained earnings at the end of 2013.

Answer 6

Chapter 8, Problem 8.8P

1.

To determine

Supplemental LIFO disclosures: These disclosures are used to convert the inventories and the cost of goods sold amounts under LIFO to FIFO.

FIFO:

Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO:

Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

To calculate: the amount that would be reported for cost of goods sold had Company C used the FIFO inventory method for its entire inventory.

Answer 7

Chapter 8, Problem 8.8P

1.

To determine

Supplemental LIFO disclosures: These disclosures are used to convert the inventories and the cost of goods sold amounts under LIFO to FIFO.

FIFO:

Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO:

Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

To calculate: the amount that would be reported for cost of goods sold had Company C used the FIFO inventory method for its entire inventory.

Answer 8

2.

To determine

To explain: The reason as to why the information contained in the disclosure note be useful to a financial analyst.

Answer 9

2.

To determine

To explain: The reason as to why the information contained in the disclosure note be useful to a financial analyst.

Answer 10

3.

To determine

The higher (lower) amount of retained earnings at the end of 2013.

Answer 11

3.

To determine

The higher (lower) amount of retained earnings at the end of 2013.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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. 8.6Q Ch. 8 - The Esquire Company employs a periodic inventory...Ch. 8 - Prob. 8.8Q Ch. 8 - Its common in the electronics industry for unit...Ch. 8 - Explain why proponents of LIFO argue that it...

To explain: The reason as to why the information contained in the disclosure note be useful to a financial analyst.

The higher (lower) amount of retained earnings at the end of 2013.

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