Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period. To Calculate: The cost of goods sold using the FIFO periodic inventory method of P Electronics.

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Answer 1

Question

Chapter 6, Problem 6.6E

(a)

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

To Calculate: The cost of goods sold using the FIFO periodic inventory method of P Electronics.

(b)

To determine

Specific identification method refer to accurately identifying the items that are being sold and stored as ending inventory with its purchase. It requires the companies to keep perfect records of the original cost of each and every individual items of the inventory.

To Calculate: The cost of goods sold using specific identification method of P Electronics.

(c)

To determine

To Explain: Whether the FIFO method or specific identification method would be recommended for P Electronics.

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E6-6 On December 1, Discount Electronics has three DVD players left in stock. All are identical and priced to sell at $750. Of the three DVD players left in stock, one with serial #1012 was pur- chased on June 1 at a cost of $500, another with serial #1045 was purchased on November 1 for $450. The last player, serial #1056, was purchased on November 30 for $400. Instructions (a) Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three players were sold by the end of December, Discount Electronics' year end. (b) If Discount Electronics used the specific identification method instead of the FIFO method, how might it alter its income by "selectively choosing" which particular players to sell to the two customers? What would Discount's cost of goods sold be if the company wished to max- imize income? What would Discount's cost of goods sold be if the company wished to mini- mize income? (c) Which inventory method do you recommend that…

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Sports Haven keeps an inventory of FITBIT Wearable Technology. Assume an inventory of 35 FitBits at the beginning of the year at a cost of $44.32 each. Additional FitBits were purchased as follows: 15 at $45.50 each on March 22, 30 at $45.80 each on May 2, 10 at $46.20 each on July 14, and 40 at $43.90 each on September 9. Use FIFO to determine the cost of the ending inventory. Assume 32 FitBits in inventory at the end of the year.

Answer 2

Question

Chapter 6, Problem 6.6E

(a)

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

To Calculate: The cost of goods sold using the FIFO periodic inventory method of P Electronics.

(b)

To determine

Specific identification method refer to accurately identifying the items that are being sold and stored as ending inventory with its purchase. It requires the companies to keep perfect records of the original cost of each and every individual items of the inventory.

To Calculate: The cost of goods sold using specific identification method of P Electronics.

(c)

To determine

To Explain: Whether the FIFO method or specific identification method would be recommended for P Electronics.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 6.6E

(a)

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

To Calculate: The cost of goods sold using the FIFO periodic inventory method of P Electronics.

(b)

To determine

Specific identification method refer to accurately identifying the items that are being sold and stored as ending inventory with its purchase. It requires the companies to keep perfect records of the original cost of each and every individual items of the inventory.

To Calculate: The cost of goods sold using specific identification method of P Electronics.

(c)

To determine

To Explain: Whether the FIFO method or specific identification method would be recommended for P Electronics.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.6E

(a)

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

To Calculate: The cost of goods sold using the FIFO periodic inventory method of P Electronics.

(b)

To determine

Specific identification method refer to accurately identifying the items that are being sold and stored as ending inventory with its purchase. It requires the companies to keep perfect records of the original cost of each and every individual items of the inventory.

To Calculate: The cost of goods sold using specific identification method of P Electronics.

(c)

To determine

To Explain: Whether the FIFO method or specific identification method would be recommended for P Electronics.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.6E

(a)

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

To Calculate: The cost of goods sold using the FIFO periodic inventory method of P Electronics.

(b)

To determine

Specific identification method refer to accurately identifying the items that are being sold and stored as ending inventory with its purchase. It requires the companies to keep perfect records of the original cost of each and every individual items of the inventory.

To Calculate: The cost of goods sold using specific identification method of P Electronics.

(c)

To determine

To Explain: Whether the FIFO method or specific identification method would be recommended for P Electronics.

Answer 6

Chapter 6, Problem 6.6E

(a)

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

To Calculate: The cost of goods sold using the FIFO periodic inventory method of P Electronics.

Answer 7

Chapter 6, Problem 6.6E

(a)

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

To Calculate: The cost of goods sold using the FIFO periodic inventory method of P Electronics.

Answer 8

(b)

To determine

Specific identification method refer to accurately identifying the items that are being sold and stored as ending inventory with its purchase. It requires the companies to keep perfect records of the original cost of each and every individual items of the inventory.

To Calculate: The cost of goods sold using specific identification method of P Electronics.

Answer 9

(b)

To determine

Specific identification method refer to accurately identifying the items that are being sold and stored as ending inventory with its purchase. It requires the companies to keep perfect records of the original cost of each and every individual items of the inventory.

To Calculate: The cost of goods sold using specific identification method of P Electronics.

Answer 10

(c)

To determine

To Explain: Whether the FIFO method or specific identification method would be recommended for P Electronics.

Answer 11

(c)

To determine

To Explain: Whether the FIFO method or specific identification method would be recommended for P Electronics.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 6 - The key to successful business operations is...Ch. 6 - Prob. 2Q Ch. 6 - What is just-in-time inventory management? What...Ch. 6 - Prob. 4Q Ch. 6 - Prob. 5Q Ch. 6 - Prob. 6Q Ch. 6 - Prob. 7Q Ch. 6 - Prob. 8Q Ch. 6 - What is the major advantage and major disadvantage...Ch. 6 - The selection of an inventory cost flow method is...

Solution Summary: The author explains the FIFO periodic inventory system, which is used to determine the amount of inventory at the end of each accounting period.

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To Explain: Whether the FIFO method or specific identification method would be recommended for P Electronics.

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