Requirement 1 (a)
The amount of inventory using FIFO.
Requirement 1 (a)
Explanation of Solution
Calculate the amount of inventory:
Requirement 1 (b)
The amount of total assets using FIFO.
Requirement 1 (b)
Explanation of Solution
Calculate the amount of total assets:
Requirement 1 (c)
The amount of total liabilities and stockholders’ equity using FIFO.
Requirement 1 (c)
Explanation of Solution
Calculate the amount of total liabilities and
Requirement 1 (d)
The amount of stockholders’ equity using FIFO.
Requirement 1 (d)
Explanation of Solution
Calculate the amount of stockholders’ equity:
Requirement 2 (a)
The amount of inventory using weighted average.
Requirement 2 (a)
Explanation of Solution
Calculate the amount of inventory using weighted average:
Step 1: Calculate the weighted average cost per unit.
Step 2: Calculate the amount of inventory using weighted average.
Requirement 1 (b)
The amount of total assets using weighted average.
Requirement 1 (b)
Explanation of Solution
Calculate the amount of total assets using weighted average:
Requirement 1 (c)
The amount of total liabilities and stockholders’ equity using weighted average.
Requirement 1 (c)
Explanation of Solution
Calculate the amount of total liabilities and stockholders’ equity:
Requirement 1 (d)
The amount of stockholders’ equity using weighted average.
Requirement 1 (d)
Explanation of Solution
Calculate the amount of stockholders’ equity:
Requirement 3 (a)
The amount of inventory using LIFO.
Requirement 3 (a)
Explanation of Solution
Calculate the amount of inventory:
Requirement 3 (b)
The amount of total assets using LIFO.
Requirement 3 (b)
Explanation of Solution
Calculate the amount of total assets:
Requirement 3 (c)
The amount of total liabilities and stockholders’ equity using LIFO.
Requirement 3 (c)
Explanation of Solution
Calculate the amount of total liabilities and stockholders’ equity:
Requirement 3 (d)
The amount of stockholders’ equity using LIFO.
Requirement 3 (d)
Explanation of Solution
Calculate the amount of stockholders’ equity:
Requirement 4 (i)
The current ratio using FIFO.
Requirement 4 (i)
Explanation of Solution
Calculate the current ratio:
Requirement 4 (ii)
The current ratio using weighted average.
Requirement 4 (ii)
Explanation of Solution
Calculate the current ratio:
Requirement 4 (iii)
The current ratio using LIFO.
Requirement 4 (iii)
Explanation of Solution
Calculate the current ratio:
The ratios are differing due to the inventory costing method assigned. Under FIFO method inventory is computed using the higher last–in costs, however, LIFO is using the lower first–in costs, and weighted average being an average of all costs.
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Chapter 7 Solutions
FUND.OF FINANCIAL ACCOUNTING ACCESS
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