Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please help me solve this with steps and explanati

Please help me solve this with steps and explanation.Thank you. Pappas Appliances uses the periodic...

90.2K

Verified Solution

Question

Accounting

Please help me solve this with steps and explanation.Thank you.

Pappas Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the year, and the inventory count at December 31 are summarized as follows:

image

INSTRUCTIONS

1) Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings:

Model Quantity Unit Cost Total Cost

If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase.

HIDE ANSWERAnswer: $18,545

2) Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1).

3) Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indicated in (1).

4) Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.

Purchases Invoices

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students