Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E6-14 Usin 4 Using accounting vocabulary carch the accounting terms with the corresponding definitions. Specific identification 2. Materiality concept 2. Last-in, first-out (LIFO) 4. Conservatism

image text in transcribed
image text in transcribed
E6-14 Usin 4 Using accounting vocabulary carch the accounting terms with the corresponding definitions. Specific identification 2. Materiality concept 2. Last-in, first-out (LIFO) 4. Conservatism 5. Consistency principle 6. Weighted-average 7. Disclosure principle 8. First-in, first-out (FIFO) d. Treats the oldest inventory purchases as the first units sold. b. Requires that a company report enous res that a company report enough information for outsiders to make knowledgeable decisions. c. Identifies exactly which inventory item was sold. Usually used for higher cost inventory. d. Calculates a weighted average cost based on the cost of goods available for sale and the number of units available. e. Principle whose foundation is to exercise caution in reporting financial statement items. f. Treats the most recentewest purchases as the first units sold. g. Businesses should use the same accounting methods from period to period. h. Principle that states significant items must conform to GAAP. 15 Comparing inventory methods Super Mart, a regional convenience store chain, maintains milk inventory The first month's milk purchases and sales at its Freeport, Florida, location Florida location follow: ain, maintains milk inventory by the gallon. Nov. 2 Purchased 11 gallons @ $2.15 each 6 Purchased 2 gallons @ $2.80 each 8 Sold 6 gallons of milk to a customer 13 Purchased 3 gallons @ $2.85 each 14 Sold 4 gallons of milk to a customer Requirements 1. Determine the amount that would be reported in ending merchandise inventory on November 15 using the FIFO inventory costing method. 2. Determine the amount that would be reported in ending merchandise inventory on November 15 using the LIFO inventory costing method. 3. Determine the amount that would be reported in ending merchandise inventory on November 15 using the weighted average inventory costing method. Round all amounts to the nearest cent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

6th edition

013703038X, 978-0137030385

More Books

Students also viewed these Accounting questions