Concept explainers
a
Introduction:
The Periodic inventory system of recording the inventory records includes updating the inventory accounts only after the end of regular periodic intervals. Therefore, the cost of goods sold and the cost of ending inventory is computed at the end of the period.
First in first out method implies that the goods received first have been issued first for the purpose of computing the cost of goods sold.
Cost of ending inventory and cost of goods sold under FIFO method.
b
Introduction:
The last in first out method implies that the inventory which has been received most recently is issued first for the purpose of the cost of goods sold.
Cost of ending inventory and cost of goods sold under LIFO.
c
Gross Profit is the difference between the sales revenue and the cost of goods sold during the period. It refers to the gross margin earned on the sale of the product.
Gross Profits of the business under both the methods.
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FINANCIAL ACCT.FUND.(LOOSELEAF)
- ( Appendix 6B) Inventory Costing Methods: Periodic Average Cost Refer to the information for Filimonov Inc. (p. 337) and assume that the company uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)arrow_forward( Appendix 6B) Inventory Costing Methods: Periodic Inventory Systems. Refer to the information for Tyler Company in Brief Exercise 6-35 and assume that the company uses the periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the FIFO, LIFO, and average cost methods. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest whole dollar.)arrow_forward( Appendix 6B) Inventory Costing Methods: Periodic LIFO Refer to the information for Filimonov Inc. (p. 337) and assume that the company uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method.arrow_forward
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- Perpetual inventory using FIFO Assume that the business in Exercise 6-5 maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3.arrow_forwardPerpetual inventory using LIFO Assume that the business in Exercise 6-3 maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4.arrow_forwardPerpetual inventory using LIFO Assume that the business in Exercise 6-9 maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated in Exhibit 4.arrow_forward
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