Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 6, Problem 6.15E
Comparing inventory methods
Zippy, a regional convenience store chain, maintains milk inventory by the gallon. The first month’s milk purchases and sales at its Columbus, Ohio, location follow:
| Nov. 2 | Purchased 11 gallons@ $2.00 each |
| 6 | Purchased 2 gallons@ $2.65 each |
| 8 | Sold 3 gallons of milk to a customer |
| 13 | Purchased 2 gallons@ $2.70 each |
| 14 | Sold 3 gallons of milk to a customer |
Requirements
1. Determine the amount that would be reported in ending merchandise inventory on November 15 using the FIFO inventory costing method.
2. Determine the amount that would be reported in ending merchandise inventory on November 15 using the LIFO inventory costing method.
3. Determine the amount that would be reported in ending merchandise inventory on November 15 using the weighted-average inventory costing method. Round all amounts to the nearest cent.
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E6-15 Comparing inventory methods
Super Mart, a regional convenience store chain, maintains milk inventory by the gallon. The first month’s milk purchases and sales at its Freeport ,Florida location follow:
Nov 2. Purchased 11 gallons @ $2.15 each
Nov. 6 Purchased 2 gallons @ $2.80 each
Nov. 8 Sold 6 gallons of milk to a customer
Nov 13. Purchased 3 gallon @ $2.85 each
Nov 14. Sold 4 gallons of milk to a customer
Requirements
Determine the amount that would be reported in ending merchandise inventory on January 15 using the FIFO inventory costing method.
Determine the amount that would be reported in ending merchandise inventory onJanuary 15 using the LIFO inventory costing method.
Determine the amount that would be reported in ending merchandise inventory on January 15 using the weighted-average inventory costing method. Round all amounts to the nearest cent.
Pass N Go, a regional convenience store chain, maintains milk inventory by the gallon. The first month's milk purchases and sales at its Charlotte, North Carolina, location follow:
A (Click the icon to view the purchases and sales)
Read the requirements.
Requirement 1. Determine the amount that would be reported in ending merchandise inventory on November 15 using the FIFO inventory costing method.
Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of
merchandise inventory purchased, sold, and on hand at the end of the period. (Enter all amounts to the nearest cent, $X XX. Enter the oldest inventory layers first.)
Purchases
Cost of Goods Sold
Inventory on Hand
More Info
Unit
Total
Unit
Total
Unit
Total
Date
Quantity
Cost
Cost
Quantity
Cost
Cost
Quantity
Cost
Cost
Nov. 2
Nov. 2 Purchased 12 gallons @ $1.90 each
6…
PLEASE FILL OUT THE CHART. use the following information to complete it. Thank you!
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
March 1
Beginning inventory
160
units
@ $52.20 per unit
March 5
Purchase
255
units
@ $57.20 per unit
March 9
Sales
320
units
@ $87.20 per unit
March 18
Purchase
115
units
@ $62.20 per unit
March 25
Purchase
210
units
@ $64.20 per unit
March 29
Sales
190
units
@ $97.20 per unit
Totals
740
units
510
units
Chapter 6 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 6 - Which principle or concept states that businesses...Ch. 6 - Which inventory costing method assigns to ending...Ch. 6 - Assume Nile.com began April with 14 units of...Ch. 6 - Suppose Nile.com used the weighted-average...Ch. 6 - Which inventory costing method results in the...Ch. 6 - Prob. 6QCCh. 6 - At December 31, 2016, Stevenson Company overstated...Ch. 6 - Suppose Maestros had cost of goods sold during the...Ch. 6 - Suppose Nile.com used the LIFO inventory costing...Ch. 6 - Prob. 1RQ
Ch. 6 - Prob. 2RQCh. 6 - Prob. 3RQCh. 6 - What is the goal of conservatism?Ch. 6 - Prob. 5RQCh. 6 - Under a perpetual inventory system, what are the...Ch. 6 - Prob. 7RQCh. 6 - Prob. 8RQCh. 6 - What does the lower-of-cost-or-market (LCM) rule...Ch. 6 - What account is debited when recording the...Ch. 6 - What is the effect on cost of goods sold, gross...Ch. 6 - When does an inventory error cancel out, and why?Ch. 6 - Prob. 13RQCh. 6 - Prob. 14RQCh. 6 - Prob. 15ARQCh. 6 - Prob. 16ARQCh. 6 - Determining inventory accounting principles Ward...Ch. 6 - Determining inventory costing methods Ward Hard...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Comparing Cost of Goods Sold under FIFO, UFO, and...Ch. 6 - Applying the lower-of-cost-or-market rule Assume...Ch. 6 - Determining the effect of an inventory error...Ch. 6 - Computing the rate of inventory turnover and days...Ch. 6 - Use the following information to answer Short...Ch. 6 - Prob. 6.12SECh. 6 - Prob. 6.13SECh. 6 - Using accounting vocabulary Match the accounting...Ch. 6 - Comparing inventory methods Zippy, a regional...Ch. 6 - Prob. 6.16ECh. 6 - Use the following information to answer Exercises...Ch. 6 - Use the following information to answer Exercises...Ch. 6 - Comparing amounts for cost of goods sold, ending...Ch. 6 - Comparing cost of goods sold and gross...Ch. 6 - Prob. 6.21ECh. 6 - Prob. 6.22ECh. 6 - Prob. 6.23ECh. 6 - Prob. 6.24ECh. 6 - Prob. 6.25ECh. 6 - Prob. 6.26ECh. 6 - Prob. 6.27ECh. 6 - Accounting for inventory using the perpetual...Ch. 6 - Accounting for inventory using the perpetual...Ch. 6 - Prob. 6.30APCh. 6 - Correcting inventory errors over a three-year...Ch. 6 - Accounting for inventory using the periodic...Ch. 6 - Accounting for inventory using the perpetual...Ch. 6 - Prob. 6.34BPCh. 6 - Prob. 6.35BPCh. 6 - Prob. 6.36BPCh. 6 - Prob. 6.37BPCh. 6 - Prob. 6.38CPCh. 6 - Accounting for inventory using the perpetual...Ch. 6 - Suppose you manage Campbell Appliance. The stores...Ch. 6 - Ever since he was a kid, Carl Montague wanted to...Ch. 6 - The notes are an important part of a companys...
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