The value of cost of goods sold and cost of ending inventory using average cost method.

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Answer 1

Question

Chapter 6, Problem 6.19AE

1.

To determine

To Compute: The value of cost of goods sold and cost of ending inventory using average cost method.

2.

To determine

To Compute: The value of cost of goods sold and ending inventory using FIFO method.

3.

To determine

To Compute: The value of cost of goods sold and ending inventory using LIFO method.

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(Learning Objective 2: Calculate purchases by analyzing inventory account activity)On Willow Grove Department Stores’ most recent balance sheet, the balance of its inventory at the beginning of the year was $12,000. At the end of the year, the inventory balancewas $14,500. During that year, its cost of goods sold was $55,000. All purchases of inventorythroughout the year were on account. What was the total of Willow Grove’s purchases duringthe year?

(Learning Objectives 4, 5: Compute gross profit; estimate inventory using the grossprofit method) Cleveland Company, a camera store, lost some inventory in a fire on October15. To file an insurance claim, the company must estimate its October 15 inventory using thegross profit method. For the past two years, Cleveland Company’s gross profit has averaged41% of net sales. Its inventory records reveal the following data:Inventory, October 1................ $ 57,700Transactions October 1–15:Purchases ................................. 490,800Purchase discounts................... 17,000Purchase returns....................... 70,900Sales......................................... 660,000Requirements1. Estimate the cost of the lost inventory using the gross profit method.2. Prepare the income statement for October 1 to October 15 for this product through grossprofit. Show the detailed computations of cost of goods sold in a separate schedule.

(Learning Objective 4: Compute and evaluate gross profit percentage and inventory turnover) The Red Wagon Shop had the following inventory data:2017Ending inventory at:FIFO Cost ...............LIFO Cost...............2018$27,92012,510$ 30,50020,150Cost of goods sold at:FIFO Cost ...............LIFO Cost...............Sales revenue ...............$ 87,63097,980138,000Company managers need to know the company’s gross profit percentage and rate of inventoryturnover for 2018 under1. FIFO.2. LIFO.Which method produces a higher gross profit percentage? A higher inventory turnover?

Answer 2

Question

Chapter 6, Problem 6.19AE

1.

To determine

To Compute: The value of cost of goods sold and cost of ending inventory using average cost method.

2.

To determine

To Compute: The value of cost of goods sold and ending inventory using FIFO method.

3.

To determine

To Compute: The value of cost of goods sold and ending inventory using LIFO method.

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Answer 3

Question

Chapter 6, Problem 6.19AE

1.

To determine

To Compute: The value of cost of goods sold and cost of ending inventory using average cost method.

2.

To determine

To Compute: The value of cost of goods sold and ending inventory using FIFO method.

3.

To determine

To Compute: The value of cost of goods sold and ending inventory using LIFO method.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.19AE

1.

To determine

To Compute: The value of cost of goods sold and cost of ending inventory using average cost method.

2.

To determine

To Compute: The value of cost of goods sold and ending inventory using FIFO method.

3.

To determine

To Compute: The value of cost of goods sold and ending inventory using LIFO method.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.19AE

1.

To determine

To Compute: The value of cost of goods sold and cost of ending inventory using average cost method.

2.

To determine

To Compute: The value of cost of goods sold and ending inventory using FIFO method.

3.

To determine

To Compute: The value of cost of goods sold and ending inventory using LIFO method.

Answer 6

Chapter 6, Problem 6.19AE

1.

To determine

To Compute: The value of cost of goods sold and cost of ending inventory using average cost method.

Answer 7

Chapter 6, Problem 6.19AE

1.

To determine

To Compute: The value of cost of goods sold and cost of ending inventory using average cost method.

Answer 8

2.

To determine

To Compute: The value of cost of goods sold and ending inventory using FIFO method.

Answer 9

2.

To determine

To Compute: The value of cost of goods sold and ending inventory using FIFO method.

Answer 10

3.

To determine

To Compute: The value of cost of goods sold and ending inventory using LIFO method.

Answer 11

3.

To determine

To Compute: The value of cost of goods sold and ending inventory using LIFO method.

Answer 12

Expert Solution & Answer

Answer 13

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Answer 14

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Answer 15

Ch. 6 - Ravenna Candles recently purchased candleholders...Ch. 6 - Which inventory system maintains a running record...Ch. 6 - How is cost of goods sold classified in the...Ch. 6 - Snyders total cost of goods available for sale...Ch. 6 - Snyders cost of goods sold using the average-cost...Ch. 6 - Snyders ending inventory using the FIFO method...Ch. 6 - Snyders cost of goods sold using the LIFO method...Ch. 6 - Which U.S. GAAP principle or rule would apply if...Ch. 6 - Corrigan Corporation had beginning inventory of...Ch. 6 - Corrigans gross profit for the period is a.79,000....

The value of cost of goods sold and cost of ending inventory using average cost method.

Solution Summary: The author explains the cost flow assumption method that distributes the total cost of goods available for sale among all the available units.

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To Compute: The value of cost of goods sold and cost of ending inventory using average cost method.

To Compute: The value of cost of goods sold and ending inventory using FIFO method.

To Compute: The value of cost of goods sold and ending inventory using LIFO method.

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