5 CASE NO#2- PERIODIC INVENTORY SYSTEM - INVENTORY VALUATION METHODSPardo, a chain of "general merchandise stores and the largest of its type in UAE. The company follows Perpetual Inventory System. The companyfurnishes the following information for the month of January 2022:DateDescriptionQuantityUnit cost(OMR)January 1Opening Inventory1,70015January 6Purchase4,70016January 9Sales1,400January 111Purchase3,50016January 12Purchase4,70017JanuarySales2,500January 20Purchase1,80018January 22Purchase1,50019January 24Sales700You are required to compute:a) The amount of Cost of goods sold and Ending Inventory Value based on Weighted Average Method using periodic inventory system.b) Prepare the Journal entries based on Weighted Average Method using periodic inventory system.جامع ل

Inventory is the stock of raw materials and finished goods held by a firm at a point of time.…

Pardo, a chain of "general merchandise stores and the largest of its type in UAE. The company follows Perpetual Inventory System. The company furnishes the following information for the month of January 2022: Date Description Quantity Unit cost (OMR) January 1 Opening Inventory 1,700 15 January 6 Purchase 4,700 16 January 9 Sales 1,400 January 11 Purchase 3,500 16 January 12 Purchase 4,700 17 January 14 Sales 2,500 January 20 Purchase 1,800 18 January 22 Purchase 1,500 19 January 24 Sales 700 You are required to compute: a) The amount of Cost of goods sold and Ending Inventory Value based on Weighted Average Method using periodic inventory system. b) Prepare the Journal entries based on Weighted Average Method using periodic inventory system. جامع ل

Pardo, a chain of "general merchandise stores and the largest of its type in UAE. The company follows Perpetual Inventory System. The company furnishes the following information for the month of January 2022: Date Description Quantity Unit cost (OMR) January 1 Opening Inventory 1,700 15 January 6 Purchase 4,700 16 January 9 Sales 1,400 January 11 Purchase 3,500 16 January 12 Purchase 4,700 17 January 14 Sales 2,500 January 20 Purchase 1,800 18 January 22 Purchase 1,500 19 January 24 Sales 700 You are required to compute: a) The amount of Cost of goods sold and Ending Inventory Value based on Weighted Average Method using periodic inventory system. b) Prepare the Journal entries based on Weighted Average Method using periodic inventory system. جامع ل

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 5E: Perpetual versus Periodic Inventory Systems Howard, Inc. is a merchandising company that began...

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RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
ADJUSTMENT FOR MERCHANDISE INVENTORY USING T ACCOUNTS: PERIODIC INVENTORY SYSTEM Sandra Owens owns a business called Sandras Sporting Goods. Her beginning inventory as of January 1, 20--, was 33,000, and her ending inventory as of December 31, 20--, was S36,000. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory.
Perpetual versus Periodic Inventory Systems Howard, Inc. is a merchandising company that began operations on January 1, 2019. During January, the following inventory transactions occurred: Required: 1. Assume that Howard uses a perpetual inventory system. Prepare the journal entries to record the January inventory transactions. 2. Assume that Howard uses a periodic inventory system. Prepare the journal entries to record the January inventory transactions. Be sure to include any adjusting entries necessary. 3. Next Level Howards CEO states that a perpetual inventory system would result in a better inventory valuation. Evaluate this statement and provide a discussion of the benefits of each type of inventory system.
LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 6-1B. Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. 3. Determine the ending inventory cost on June 30.
( Appendices 6A and 6B) Inventory Costing Methods Edwards Company began operations in February 2019. Edwards accounting records provide the following data for the remainder of 2019 for one of the items the company sells: Â Edwards uses a periodic inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. Prepare the journal entries to record these transactions assuming Edwards chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 6. CONCEPTUAL CONNECTION Refer to Problem 6-67B and compare your results. What are the differences? Be sure to explain why the differences occurred.
Inventory by three cost flow methods Details regarding the inventory of appliances on January 1, 20Y7, purchases invoices during the year, and the inventory count on December 31. 2O’7. of Amsterdam Appliances are summarized as follows: Instructions Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.
Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31.
ADJUSTMENT FOR MERCHANDISE INVENTORY USING T ACCOUNTS: PERIODIC INVENTORY SYSTEM Matt Henry owns a business called Henrys Sporting Goods. His beginning inventory as of January 1, 20--, was 45,000, and his ending inventory as of December 31, 20--, was 57,000. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory.
Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on April 27 and (b) the inventory on April 30.
FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. 2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost on June 30. 5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?
Perpetual and Periodic Inventory Systems Following is a partial list of account balances for two different merchandising companies. The amounts in the accounts represent the balances at the end of the year before any adjustments are made or the books are closed. Required Identify which inventory system, perpetual or periodic, each of the two companies uses. Explain how you know which systemeach company uses by looking at the types of accounts on its books. How much inventory should Company A have on hand at the end of the year? What is its cost of goods sold for the year? Explain why you cannot determine Company Bs cost of goods sold for the year from the information available.
( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of goods sold under FIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200