HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
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Chapter 6, Problem 6.16E
1.
To determine
Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.
In First-in-First-Out method, the cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items.
To prepare: a perpetual inventory schedule using FIFO method of inventory costing to determine the cost of ending inventory and cost of goods sold for the month.
2.
To determine
To journalize: the inventory transactions using the FIFO method.
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Students have asked these similar questions
Use the following information to answer Exercises E6-
Golf Unlimited carries an inventory of putters and other golf clubs. The sales price
of each putter is $119. Company records indicate the following for a particular line of
Golf Unlimited's putters:
Unit Cost
Quantity
Date
Item
$ 53
24
Nov. 1
Balance
20
6.
Sale
70
30
8
Purchase
30
17
Sale
30
Sale
2
E6-16 Measuring and journalizing merchandise inventory and cost of goods
sold-FIFO
Requirements
1. Prepare a perpetual inventory record for the putters assuming Golf Unlimited usee
the FIFO inventory costing method. Then identify the cost of ending inventory
and cost of goods sold for the month.
ucing the FIFO inventory cost-
Golf Haven Superstore carries an inventory of putters and other golf clubs. The sales price of each putter is $144. Company records indicate the following for a particular line of Golf Haven
Superstore's putters
View the records.
Read the requirements.
Requirement 1. Prepare Golf Haven Superstore's perpetual inventory record for the putters assuming Golf Haven Supersto
Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar. Then identify the cost
Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory
been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the
Date
Jun. 1
Jun 6
Jun 8
Quantity
12
Purchases
Unit
Cost
75
Total
Cost
900
Cost of Goods Sold
Unit
Cost
Quantity
Total
Cost
2 $ 72 $ 144
Inventory on Hand
Unit
Quantity Cost
8 $
65
6
72 S
72 S
Total
Cost
576
432
450
Records
Date
Jun. 1
Jun. 6
Jun. 8…
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling
hockey stick. The hockey stick sells for $130.
Description
Mar. 1 Beginning Inventory
Mar. 3 Purchase
Mar. 6 Purchase
Mar. 17 Sale
Mar. 23 Purchase
Mar. 31 Sale
1. FIFO
Units.
19
64
114
59
58
148
2. Moving weighted average
Required:
Calculate the cost of goods sold and ending inventory under the perpetual inventory system using the following methods. (Do not
round your "Unit Cost" answers. Round all other intermediate and final answers to nearest whole dollar.)
Unit Cost
$44
$49
$54
Cost of Goods
Sold
$54
Ending
Inventory
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Chapter 6 Solutions
HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
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 - Prob. 6.2SECh. 6 - Prob. 6.3SECh. 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 - Prob. 6.8SECh. 6 - Prob. 6.9SECh. 6 - Prob. 6.10SECh. 6 - Prob. 6.11SECh. 6 - Prob. 6.12SECh. 6 - Prob. 6.13SECh. 6 - Using accounting vocabulary Match the accounting...Ch. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Use the following information to answer Exercises...Ch. 6 - Prob. 6.19ECh. 6 - Prob. 6.20ECh. 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 - Prob. 6.28APCh. 6 - Prob. 6.29APCh. 6 - Prob. 6.30APCh. 6 - Prob. 6.31APCh. 6 - Prob. 6.32APCh. 6 - Prob. 6.33BPCh. 6 - Prob. 6.34BPCh. 6 - Prob. 6.35BPCh. 6 - Prob. 6.36BPCh. 6 - Prob. 6.37BPCh. 6 - Prob. 6.38CPCh. 6 - Prob. 6.39PSCh. 6 - Prob. 6.1COPCh. 6 - Prob. 6.1CTDC
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