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.

1. 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.

2.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

Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

quesrion 2

Anti-Pandemic Pharma Co. Ltd. reports the following information in its income statement: Sales = $5,250,000; Costs = $2, 173,000; Other expenses = $187,400; Depreciation expense = $79,000; Interest expense= $53,555; Taxes $76,000; Dividends $69,000. $136,700 worth of new shares were also issued during the year and long-term debt worth $65,300 was redeemed. a) Compute the cash flow from assets b) Compute the net change in working capital (325 marks)

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.

1. 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.

2.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.

1. 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.

2.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.

1. 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.

2.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.

1. 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.

2.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

1. 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

1. 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

2.b.

To determine

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

Answer 13

2.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 - Explain the (a) lower of cost or net realizable...Ch. 9 - What are the various levels of aggregation to...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

Solution Summary: The author explains the advantages of using the dollar-value LIFO method as opposed to the traditional method.

Concept explainers

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