Inventory includes raw materials, work-in-process goods and finished products, which are held with the purpose of sale. Given: A Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO approach. Because the financial personnel at A know very little about dollar-value LIFO, they ask you to answer the following questions. (a) To explain: To explain the LIFO pool.

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Answer 1

Question

Chapter 8, Problem 9CA

To determine

Introduction: Inventory includes raw materials, work-in-process goods and finished products, which are held with the purpose of sale.

Given: A Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO approach. Because the financial personnel at A know very little about dollar-value LIFO, they ask you to answer the following questions.

(a)

To explain: To explain the LIFO pool.

To determine

(b)

To explain: Is it possible to use a LIFO pool concept and not use dollar-value LIFO?

To determine

(c)

To define: What is LIFO liquidation?

To determine

(d)

To explain: How are price indexes used in the dollar-value LIFO method?

To determine

(e)

To explain: What are the advantages of dollar-value LIFO over specific-goods LIFO?

Expert Solution & Answer

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Answer 2

Question

Chapter 8, Problem 9CA

To determine

Introduction: Inventory includes raw materials, work-in-process goods and finished products, which are held with the purpose of sale.

Given: A Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO approach. Because the financial personnel at A know very little about dollar-value LIFO, they ask you to answer the following questions.

(a)

To explain: To explain the LIFO pool.

To determine

(b)

To explain: Is it possible to use a LIFO pool concept and not use dollar-value LIFO?

To determine

(c)

To define: What is LIFO liquidation?

To determine

(d)

To explain: How are price indexes used in the dollar-value LIFO method?

To determine

(e)

To explain: What are the advantages of dollar-value LIFO over specific-goods LIFO?

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 9CA

To determine

Introduction: Inventory includes raw materials, work-in-process goods and finished products, which are held with the purpose of sale.

Given: A Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO approach. Because the financial personnel at A know very little about dollar-value LIFO, they ask you to answer the following questions.

(a)

To explain: To explain the LIFO pool.

To determine

(b)

To explain: Is it possible to use a LIFO pool concept and not use dollar-value LIFO?

To determine

(c)

To define: What is LIFO liquidation?

To determine

(d)

To explain: How are price indexes used in the dollar-value LIFO method?

To determine

(e)

To explain: What are the advantages of dollar-value LIFO over specific-goods LIFO?

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 9CA

To determine

Introduction: Inventory includes raw materials, work-in-process goods and finished products, which are held with the purpose of sale.

Given: A Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO approach. Because the financial personnel at A know very little about dollar-value LIFO, they ask you to answer the following questions.

(a)

To explain: To explain the LIFO pool.

To determine

(b)

To explain: Is it possible to use a LIFO pool concept and not use dollar-value LIFO?

To determine

(c)

To define: What is LIFO liquidation?

To determine

(d)

To explain: How are price indexes used in the dollar-value LIFO method?

To determine

(e)

To explain: What are the advantages of dollar-value LIFO over specific-goods LIFO?

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 9CA

To determine

Introduction: Inventory includes raw materials, work-in-process goods and finished products, which are held with the purpose of sale.

Given: A Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO approach. Because the financial personnel at A know very little about dollar-value LIFO, they ask you to answer the following questions.

(a)

To explain: To explain the LIFO pool.

To determine

(b)

To explain: Is it possible to use a LIFO pool concept and not use dollar-value LIFO?

To determine

(c)

To define: What is LIFO liquidation?

To determine

(d)

To explain: How are price indexes used in the dollar-value LIFO method?

To determine

(e)

To explain: What are the advantages of dollar-value LIFO over specific-goods LIFO?

Answer 6

Chapter 8, Problem 9CA

To determine

Introduction: Inventory includes raw materials, work-in-process goods and finished products, which are held with the purpose of sale.

Given: A Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO approach. Because the financial personnel at A know very little about dollar-value LIFO, they ask you to answer the following questions.

(a)

To explain: To explain the LIFO pool.

Answer 7

Chapter 8, Problem 9CA

To determine

Introduction: Inventory includes raw materials, work-in-process goods and finished products, which are held with the purpose of sale.

Given: A Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO approach. Because the financial personnel at A know very little about dollar-value LIFO, they ask you to answer the following questions.

(a)

To explain: To explain the LIFO pool.

Answer 8

To determine

(b)

To explain: Is it possible to use a LIFO pool concept and not use dollar-value LIFO?

Answer 9

To determine

(b)

To explain: Is it possible to use a LIFO pool concept and not use dollar-value LIFO?

Answer 10

To determine

(c)

To define: What is LIFO liquidation?

Answer 11

To determine

(c)

To define: What is LIFO liquidation?

Answer 12

To determine

(d)

To explain: How are price indexes used in the dollar-value LIFO method?

Answer 13

To determine

(d)

To explain: How are price indexes used in the dollar-value LIFO method?

Answer 14

To determine

(e)

To explain: What are the advantages of dollar-value LIFO over specific-goods LIFO?

Answer 15

To determine

(e)

To explain: What are the advantages of dollar-value LIFO over specific-goods LIFO?

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 8 - Prob. 1Q Ch. 8 - 2. Why should inventories be included in (a) a...Ch. 8 - 3. What is the difference between a perpetual...Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - Prob. 6Q Ch. 8 - Prob. 7Q Ch. 8 - Prob. 8Q Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

(b) To explain: Is it possible to use a LIFO pool concept and not use dollar-value LIFO?

(c) To define: What is LIFO liquidation?

(d) To explain: How are price indexes used in the dollar-value LIFO method?

(e) To explain: What are the advantages of dollar-value LIFO over specific-goods LIFO?

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Chapter 8 Solutions

(b)

To explain: Is it possible to use a LIFO pool concept and not use dollar-value LIFO?

(c)

To define: What is LIFO liquidation?

(d)

To explain: How are price indexes used in the dollar-value LIFO method?

(e)

To explain: What are the advantages of dollar-value LIFO over specific-goods LIFO?