Homework Answers
| 1 |
| The consistent application of an inventory costing method is essential for comparability. |
| Consistency should be maintained in application of accounting policies and methods for financial statements to be comparable from one accounting period to another. |
| Option B comparability is correct |
| 2 |
| Understating beginning inventory will understate cost of goods sold. |
| Understating beginning inventory will overstate net income and gross margin. |
| Option A cost of goods sold is correct |
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The consistent application of an inventory costing method is essential for A. conservatism. B. comparability. C....
The consistent application of an inventory costing method is essential for Select one: a. accuracy. b....
The consistent application of an inventory costing method is essential for Select one: a. accuracy. b. comparability. c. prudence. d. efficiency.
14) Which of the following is an application of the conservatism principle? A) reporting only material...
14) Which of the following is an application of the conservatism principle? A) reporting only material amounts in the financial statements B) reporting all relevant information in the financial statements C) reporting inventory at the lower of cost or market D) using the same depreciation method from period to period
CHAPTER 6 1. Which of the following is NOT an inventory costing method? A) specific identification...
CHAPTER 6 1. Which of the following is NOT an inventory costing method? A) specific identification B) lower of cost or market C) last-in, first-out D) first-in, first-out 2. Which of the following inventory costing methods is based on the actual cost of each particular unit of inventory? A) specific identification B) weighted average C) last-in, first-out D) first-in, first-out 3. Which of the following inventory costing methods uses the cost of the oldest purchases to compute the cost of...
Applying and Analyzing Inventory Costing Methods At the beginning of the current period, Chen carried 1,000...
Applying and Analyzing Inventory Costing Methods At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $10. A summary of purchases during the current period follows. During the period. Chen sold 2,800 units. Units Unit Cost Cost Beginning Inventory 1,000 $ 10 $10,000 Purchase # 1 1 ,800 11 19,800 Purchase # 2 0 0 13 10,400 Purchase 3 1,200 15 18,000 la) Assume that Chen uses the first-in, first-out method....
Print Question 1 Nor complete Marked out of 17.00 plag question Applying and Analyzing Inventory Costing...
Print Question 1 Nor complete Marked out of 17.00 plag question Applying and Analyzing Inventory Costing Methods At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $40. A summary of purchases during the current period follows. During the period. Chen sold 2,800 units Units Unit Cost Cost Beginning inventory 1.000 540 540.000 Purchase 1.800 44 79.200 Purchase 2 300 41.600 Purchase 1200 69.600 (a) Assume that Chen uses the first...
Inventory Costing Methods-Perpetual Method Using the data below, assume that Graham Corporation uses the perpetual inventory...
Inventory Costing Methods-Perpetual Method Using the data below, assume that Graham Corporation uses the perpetual inventory system. Calculate the value of ending inventory and cost of goods sold for the year using the perpetual method and (a) first.in, first-out, (b) last-in, first-out, and (c) weighted-average cost method. Units Unit Cost Beginning inventory, January 1,200 Purchases: February 11 1,500 May 18 1,400 October 23 1,100 March 1 July 1 1,400 October 29 1,000 Round the cost per unit to 3 decimal...
__________ ____________ __________ ______________ Inventory Costing Methods - Periodic Method The Kali Company uses...
__________
____________
__________
______________
Inventory Costing Methods - Periodic Method The Kali Company uses the periodic inventory system for its merchandise inventory. The June 1 inventory for one of the items in the merchandise inventory consisted of 60 units with a unit cost of $45. Transactions for this item during June were as follows: June 5 Purchased 40 units @ $50 per unit 13 Sold 50 units @ $95 per unit 25 Purchased 40 units @ $53 per unit 29...
Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method...
Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transacions in chronalogical order, calculating news inventory an hand balances ater each transaction Once all of the transacions have been entered into the perpetal record, caloulate the quantly and total oost of merchandise inventory purchased, sold, and on hand at the end...
Inventory Costing Methods—Perpetual Method The Luann Company uses the perpetual inventory system. The following July data...
Inventory Costing Methods—Perpetual Method The Luann Company uses the perpetual inventory system. The following July data are for an item in Luann’s inventory: July 1 Beginning inventory 30 Units@ $9 per unit 10 Purchased 50 Units@ $11 per unit 15 sold 60 Units 26 Purchased 25 Units@ $13 per unit Calculate the cost of goods sold for the July 15 sale using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the...
Inventory Costing Methods-Perpetual Method Merritt Company uses the perpetual inventory system. The following May data are...
Inventory Costing Methods-Perpetual Method Merritt Company uses the perpetual inventory system. The following May data are for an item in Merritt's inventory: May 1 Beginning inventory 170 unit@ $32 per unit 12 Purchased 120 unit@ $37 per unit 16 sold 190 unit@ 24 Purchased 180 unit@ $38 per unit Calculate the cost of goods sold for the May 16 sale using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the nearest...
The consistent application of an inventory costing method is essential for Select one: a. accuracy. b. comparability. c. prudence. d. efficiency.
14) Which of the following is an application of the conservatism principle? A) reporting only material amounts in the financial statements B) reporting all relevant information in the financial statements C) reporting inventory at the lower of cost or market D) using the same depreciation method from period to period
CHAPTER 6 1. Which of the following is NOT an inventory costing method? A) specific identification B) lower of cost or market C) last-in, first-out D) first-in, first-out 2. Which of the following inventory costing methods is based on the actual cost of each particular unit of inventory? A) specific identification B) weighted average C) last-in, first-out D) first-in, first-out 3. Which of the following inventory costing methods uses the cost of the oldest purchases to compute the cost of...
Applying and Analyzing Inventory Costing Methods At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $10. A summary of purchases during the current period follows. During the period. Chen sold 2,800 units. Units Unit Cost Cost Beginning Inventory 1,000 $ 10 $10,000 Purchase # 1 1 ,800 11 19,800 Purchase # 2 0 0 13 10,400 Purchase 3 1,200 15 18,000 la) Assume that Chen uses the first-in, first-out method....
Print Question 1 Nor complete Marked out of 17.00 plag question Applying and Analyzing Inventory Costing Methods At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $40. A summary of purchases during the current period follows. During the period. Chen sold 2,800 units Units Unit Cost Cost Beginning inventory 1.000 540 540.000 Purchase 1.800 44 79.200 Purchase 2 300 41.600 Purchase 1200 69.600 (a) Assume that Chen uses the first...
Inventory Costing Methods-Perpetual Method Using the data below, assume that Graham Corporation uses the perpetual inventory system. Calculate the value of ending inventory and cost of goods sold for the year using the perpetual method and (a) first.in, first-out, (b) last-in, first-out, and (c) weighted-average cost method. Units Unit Cost Beginning inventory, January 1,200 Purchases: February 11 1,500 May 18 1,400 October 23 1,100 March 1 July 1 1,400 October 29 1,000 Round the cost per unit to 3 decimal...
__________
____________
__________
______________
Inventory Costing Methods - Periodic Method The Kali Company uses the periodic inventory system for its merchandise inventory. The June 1 inventory for one of the items in the merchandise inventory consisted of 60 units with a unit cost of $45. Transactions for this item during June were as follows: June 5 Purchased 40 units @ $50 per unit 13 Sold 50 units @ $95 per unit 25 Purchased 40 units @ $53 per unit 29...
Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transacions in chronalogical order, calculating news inventory an hand balances ater each transaction Once all of the transacions have been entered into the perpetal record, caloulate the quantly and total oost of merchandise inventory purchased, sold, and on hand at the end...
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