Method of Inventory: Inventory refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market. Inventory is valued under three methods: FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period. LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory. Average cost method: Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period. To prepare: the 2016 journal entry to adjust the accounts to reflect the average cost method.

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Answer 1

Question

Chapter 9, Problem 9.21E

1.

To determine

Method of Inventory: Inventory refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market. Inventory is valued under three methods:

FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Average cost method: Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To prepare: the 2016 journal entry to adjust the accounts to reflect the average cost method.

2.

To determine

the amount of cost of goods sold that would be higher or lower in the 2015 revised income statement.

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Answer 2

Question

Chapter 9, Problem 9.21E

1.

To determine

Method of Inventory: Inventory refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market. Inventory is valued under three methods:

FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Average cost method: Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To prepare: the 2016 journal entry to adjust the accounts to reflect the average cost method.

2.

To determine

the amount of cost of goods sold that would be higher or lower in the 2015 revised income statement.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 9.21E

1.

To determine

Method of Inventory: Inventory refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market. Inventory is valued under three methods:

FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Average cost method: Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To prepare: the 2016 journal entry to adjust the accounts to reflect the average cost method.

2.

To determine

the amount of cost of goods sold that would be higher or lower in the 2015 revised income statement.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 9, Problem 9.21E

1.

To determine

Method of Inventory: Inventory refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market. Inventory is valued under three methods:

FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Average cost method: Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To prepare: the 2016 journal entry to adjust the accounts to reflect the average cost method.

2.

To determine

the amount of cost of goods sold that would be higher or lower in the 2015 revised income statement.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 9.21E

1.

To determine

Method of Inventory: Inventory refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market. Inventory is valued under three methods:

FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Average cost method: Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To prepare: the 2016 journal entry to adjust the accounts to reflect the average cost method.

2.

To determine

the amount of cost of goods sold that would be higher or lower in the 2015 revised income statement.

Answer 6

Chapter 9, Problem 9.21E

1.

To determine

Method of Inventory: Inventory refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market. Inventory is valued under three methods:

FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Average cost method: Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To prepare: the 2016 journal entry to adjust the accounts to reflect the average cost method.

Answer 7

Chapter 9, Problem 9.21E

1.

To determine

Method of Inventory: Inventory refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market. Inventory is valued under three methods:

FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it starts from the selling of the beginning inventory, followed by the units purchased in a chronological order of their purchases took place during a particular period.

LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Average cost method: Under this method, the cost of the goods available for sale is divided by the number of units available for sale during a particular period.

To prepare: the 2016 journal entry to adjust the accounts to reflect the average cost method.

Answer 8

2.

To determine

the amount of cost of goods sold that would be higher or lower in the 2015 revised income statement.

Answer 9

2.

To determine

the amount of cost of goods sold that would be higher or lower in the 2015 revised income statement.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 9 - Prob. 9.1Q Ch. 9 - Prob. 9.2Q Ch. 9 - Describe the alternative approaches for recording...Ch. 9 - Explain the gross profit method of estimating...Ch. 9 - The Rider Company uses the gross profit method to...Ch. 9 - Explain the retail inventory method of estimating...Ch. 9 - Both the gross profit method and the retail...Ch. 9 - Define each of the following retail terms: initial...Ch. 9 - Explain how to estimate the average cost of...Ch. 9 - Prob. 9.10Q

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the amount of cost of goods sold that would be higher or lower in the 2015 revised income statement.

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