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.

Question

Want to see the full answer?

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Mason Corporation issued its own $15,000, 120-day, non-interest-bearing note to a bank. The only payment Mason will ever make to the bank will be for $15,000 at the maturity date of the loan, as the bank discounts the note at 8%. The proceeds to Mason are: Ans.

The future earnings, dividends, and common stock price of Square Technologies Inc. are expected to grow at a rate of 5% per year. The company’s common stock is currently selling for $30 per share and its last dividend was $4. What is the company’s cost of common equity? If the firm’s beta is 1.25, the risk-free rate is 6%, and the market rate of return is 14%, what will be the cost of common equity using the CAPM approach? If you have equal confidence in the inputs used for the two approaches, what is your estimate of the company’s cost of common equity? Berger Paints Corporation has a target capital structure of 35% debt and 65% common equity. Its before tax cost of debt is 9% and the marginal tax rate is 30%. The company’s stock is currently selling at $23 per share and the last dividend was $3. If dividends are expected to grow at a constant rate of 5%, what is the company’s cost of common equity and WACC?

Gale Corporation owns 15% of the common stock of Troy Enterprises and uses the fair-value method to account for this investment. Troy reported net income of $140,000 for 2022 and paid dividends of $80,000 on November 1, 2022. How much income should Gale recognize on this investment in 2022? None

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Concept explainers

Videos

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.

Want to see the full answer?

Chapter 9 Solutions