INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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Chapter 9, Problem 9.4DMP
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.
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Students have asked these similar questions
Problem 10-34 Multiple choice (IAA)
2. Which is a characteristic of a perpetual inventory system?
d. Inventory does not affect net income
b. Inventory records are not kept for every item.
To determine cost of goods sold
Inventory purchases are debited to a purchases account.
To determine merchandise returns
d. Goods available for sale minus cost of goods sold
Why is inventory included in the computation of net income?
1.
а.
To determine sales revenue
b.
C.
Inventory purchases are debited to a purchases account.
a.
с.
Cost of goods sold is recorded with each sale.
: Cost, of goods sold is determined as the amount of
purchases less the change in inventory.
, Which is incorrect about the perpetual inventory method?
. Purchases are recorded as debit to the inventory account.
b. The entry to record a sale includes a debit to cost of
goods sold and a credit to inventory.
c. After a physical inventory count, inventory is credited
for any missing inventory.
d. Purchase returns are recorded by…
ning Objective 2
S6-2 Determining inventory costing methods
Ward Hardware does not expect costs to change dramatically and wants to use an
inventory costing method that averages cost changes.
Requirements
1. Which inventory costing method would best meet Ward's goal?
2. Assume Ward wanted to expense out the newer purchases of goods instead.
Which inventory costing method would best meet that need?
Question 25
25. (CLO5, PLO5, ZULO1) The journal entry for purchase of inventory on account will require a:
O debit to cost of goods sold and credit to inventory
debit to sales returns and credit to revenues
debit to inventory and credit to accounts payable
debit to inventory and credit to accounts receivable
Chapter 9 Solutions
INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
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
Ch. 9 - Explain the LIFO retail inventory method.Ch. 9 - Discuss the treatment of freight-in, net markups,...Ch. 9 - Explain the difference between the retail...Ch. 9 - Prob. 9.14QCh. 9 - Prob. 9.15QCh. 9 - Explain the accounting treatment of material...Ch. 9 - Identify any differences between U.S. GAAP and...Ch. 9 - (Based on Appendix 9) Define purchase commitments....Ch. 9 - (Based on Appendix 9) Explain how purchase...Ch. 9 - Lower of cost or net realizable value LO91 Ross...Ch. 9 - Lower of cost or net realizable value LO91 SLR...Ch. 9 - Lower of cost or market LO91 [This is a variation...Ch. 9 - Lower of cost or market LO91 [This is a variation...Ch. 9 - Prob. 9.5BECh. 9 - Gross profit method; solving for unknown LO92...Ch. 9 - Retail inventory method; average cost LO93 Kiddie...Ch. 9 - Retail inventory method; LIFO LO93 Refer to the...Ch. 9 - Conventional retail method LO94 Refer to the...Ch. 9 - Conventional retail method LO94 Roberson...Ch. 9 - Lower of cost or net realizable value LO91 Herman...Ch. 9 - Lower of cost or net realizable value LO91 The...Ch. 9 - Lower of cost or market LO91 [This is a variation...Ch. 9 - Lower of cost or market LO91 [This is a variation...Ch. 9 - Prob. 9.11ECh. 9 - Concepts; terminology LO91 through LO97 Listed...Ch. 9 - Prob. 9.1PCh. 9 - Prob. 9.3PCh. 9 - Prob. 9.8PCh. 9 - Prob. 9.1DMPCh. 9 - Prob. 9.3DMPCh. 9 - Prob. 9.4DMPCh. 9 - Prob. 9.5DMPCh. 9 - Prob. 9.6DMPCh. 9 - Prob. 9.7DMPCh. 9 - Real World Case 98 Various inventory issues;...Ch. 9 - Prob. 9.9DMPCh. 9 - Judgment Case 910 Inventory errors LO97 Some...Ch. 9 - Prob. 9.12DMPCh. 9 - Prob. 2CCTC
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