Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. 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. Retail inventory method : It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail. To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

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Answer 1

Question

Chapter 9, Problem 9.4BYP

1. (a)

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. 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.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

2. a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

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Indira Products has provided the following data for the month of August: a. The balance in the Finished Goods inventory account at the beginning of the month was $65,000 and at the end of the month was $29,500. b. The cost of goods manufactured for the month was $210,000. c. The actual manufacturing overhead cost incurred was $71,800 and the manufacturing overhead cost applied to Work in Process was $75,200. d. The company closes out any underapplied or overapplied manufacturing overhead to the cost of goods sold. What is the adjusted cost of goods sold that would appear on the income statement for August?

Answer 2

Question

Chapter 9, Problem 9.4BYP

1. (a)

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. 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.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

2. a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

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Answer 3

Question

Chapter 9, Problem 9.4BYP

1. (a)

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. 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.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

2. a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 9, Problem 9.4BYP

1. (a)

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. 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.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

2. a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

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Answer 5

Chapter 9, Problem 9.4BYP

1. (a)

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. 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.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

2. a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

Answer 6

Chapter 9, Problem 9.4BYP

1. (a)

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. 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.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

Answer 7

Chapter 9, Problem 9.4BYP

1. (a)

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. 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.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

Answer 8

b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

Answer 9

b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

Answer 10

2. a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

Answer 11

2. a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

Answer 12

b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

Answer 13

b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 9 - Prob. 9.1Q Ch. 9 - Prob. 9.2Q Ch. 9 - Describe the alternative approaches for recording...Ch. 9 - Explain the gross profit method of estimating...Ch. 9 - The Rider Company uses the gross profit method to...Ch. 9 - Explain the retail inventory method of estimating...Ch. 9 - Both the gross profit method and the retail...Ch. 9 - Define each of the following retail terms: initial...Ch. 9 - Explain how to estimate the average cost of...Ch. 9 - Prob. 9.10Q

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To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

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Chapter 9 Solutions