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. 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. Average cost method Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period. To State: the inventory methods that Company F uses to value its inventory.

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Answer 1

Question

Chapter 9, Problem 9.8BYP

1.

To determine

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.

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.

Average cost method

Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To State: the inventory methods that Company F uses to value its inventory.

2.

To determine

To State: the price index that the company uses in applying the retail inventory method.

3.

To determine

the income effect of using LIFO versus another method for the current fiscal year.

4.

To determine

To calculate: the company’s inventory turnover ratio for the fiscal year ended February 1, 2014.

5.

To determine

To describe: the accounting treatment required for the switch to the average cost method.

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Answer 2

Question

Chapter 9, Problem 9.8BYP

1.

To determine

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.

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.

Average cost method

Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To State: the inventory methods that Company F uses to value its inventory.

2.

To determine

To State: the price index that the company uses in applying the retail inventory method.

3.

To determine

the income effect of using LIFO versus another method for the current fiscal year.

4.

To determine

To calculate: the company’s inventory turnover ratio for the fiscal year ended February 1, 2014.

5.

To determine

To describe: the accounting treatment required for the switch to the average cost method.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 9.8BYP

1.

To determine

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.

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.

Average cost method

Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To State: the inventory methods that Company F uses to value its inventory.

2.

To determine

To State: the price index that the company uses in applying the retail inventory method.

3.

To determine

the income effect of using LIFO versus another method for the current fiscal year.

4.

To determine

To calculate: the company’s inventory turnover ratio for the fiscal year ended February 1, 2014.

5.

To determine

To describe: the accounting treatment required for the switch to the average cost method.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 9, Problem 9.8BYP

1.

To determine

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.

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.

Average cost method

Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To State: the inventory methods that Company F uses to value its inventory.

2.

To determine

To State: the price index that the company uses in applying the retail inventory method.

3.

To determine

the income effect of using LIFO versus another method for the current fiscal year.

4.

To determine

To calculate: the company’s inventory turnover ratio for the fiscal year ended February 1, 2014.

5.

To determine

To describe: the accounting treatment required for the switch to the average cost method.

Expert Solution & Answer

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See solution

Answer 5

Chapter 9, Problem 9.8BYP

1.

To determine

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.

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.

Average cost method

Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To State: the inventory methods that Company F uses to value its inventory.

2.

To determine

To State: the price index that the company uses in applying the retail inventory method.

3.

To determine

the income effect of using LIFO versus another method for the current fiscal year.

4.

To determine

To calculate: the company’s inventory turnover ratio for the fiscal year ended February 1, 2014.

5.

To determine

To describe: the accounting treatment required for the switch to the average cost method.

Answer 6

Chapter 9, Problem 9.8BYP

1.

To determine

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.

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.

Average cost method

Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To State: the inventory methods that Company F uses to value its inventory.

Answer 7

Chapter 9, Problem 9.8BYP

1.

To determine

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.

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.

Average cost method

Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To State: the inventory methods that Company F uses to value its inventory.

Answer 8

2.

To determine

To State: the price index that the company uses in applying the retail inventory method.

Answer 9

2.

To determine

To State: the price index that the company uses in applying the retail inventory method.

Answer 10

3.

To determine

the income effect of using LIFO versus another method for the current fiscal year.

Answer 11

3.

To determine

the income effect of using LIFO versus another method for the current fiscal year.

Answer 12

4.

To determine

To calculate: the company’s inventory turnover ratio for the fiscal year ended February 1, 2014.

Answer 13

4.

To determine

To calculate: the company’s inventory turnover ratio for the fiscal year ended February 1, 2014.

Answer 14

5.

To determine

To describe: the accounting treatment required for the switch to the average cost method.

Answer 15

5.

To determine

To describe: the accounting treatment required for the switch to the average cost method.

Answer 16

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Answer 17

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Answer 18

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Answer 19

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 State: the price index that the company uses in applying the retail inventory method.

the income effect of using LIFO versus another method for the current fiscal year.

To calculate: the company’s inventory turnover ratio for the fiscal year ended February 1, 2014.

To describe: the accounting treatment required for the switch to the average cost method.

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Chapter 9 Solutions