The inventory that continually discloses the amount of inventory on hand is called:   a) specific identification b) weighted average c) periodic d) perpetual

Q: Under a perpetual inventory system a. accounting records continuously disclose the amount of…

A: Under the perpetual inventory system, purchases and sales are continuously updated to the inventory.

Q: Using a periodic inventory system, Bertram Company records inventory at lower of cost or NRV using…

A: Periodic system of inventory is the one which states the inventory under that the updates are made…

Q: Under which inventory cost flow assumption is the oldest cost of inventory items likely to remain on…

A: Correct option is LIFO

Q: Under a perpetual inventory system  accounting records continuously disclose the amount of…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Q: Perpetual versus Periodic Inventory Systems Graham Company is trying to select an inventory system.…

A: The inventory management system mechanism involves the efficient management of the storage of goods…

Q: Which of the following are characteristics of a perpetual inventory system? (a). Management knows…

A: There were two types of inventory systems to record and maintain inventory.   1. Periodic…

Q: True or False Merchandise inventory is reported in the long-term assets section of the statement of…

A: Long-term assets:                            Long-term assets are those assets called noncurrent…

Q: Under the perpetual inventory system, increases and decreases in inventory are recorded through the…

A: Solution: Under perpetual inventory system, inventory records are updated with every purchase and…

Q: Continuous determination of inventory ending value and gross profits are available in one of the…

A: The inventory valuation is performed differently in different systems.

Q: In a periodic inventory system, the quantity of ending inventory is determined by: a. Looking at the…

A: Under the periodic inventory method total ending inventory can be calculated by physical count.

Q: What is the effect of an entry to record the purchase of inventory on account under the perpetual…

A: Under the perpetual inventory system, purchases are directly debited to the "Inventory account". And…

Q: > Exercises For all exercises, assume the perpetual inventory system is used unless stated…

A: All necessary definition has been linked with concept in following step. LIFO means last in first…

Q: Using a periodic inventory system, Bertram Company records inventory at lower of cost or NRV using…

A: As per accounting standards, inventory has to be reported at lower of cost or NRV. Normally the…

Q: Average inventory is computed as a.(Inventory at the Beginning of the Period − Inventory at the End…

A: Average inventory is the average quantity of goods available over a specific time period. It is the…

Q: Perpetual versus Periodic Inventory Systems Graham Company is trying to select an inventory system.…

A: Periodic and Perpetual inventory systems are two systems that are used to account inventory…

Q: The journal entry to record the return of inventory purchased on credit under a periodic inventory…

A: One of the main feature of periodic system of inventory is all the adjustments are made at end of…

Q: Determine the ending inventory under a perpetual inventory system using Moving Average and LIFO…

A: Inventory valuation refers to the valuation of inventories using the valuation methods such as FIFO…

Q: Which of the following is not a characteristic of a perpetual inventory system? O Cost of goods sold…

A: Here in this question we are required to answer which of the characteristics is not of perpetual…

Q: (a) Prepare journal entries to record the following transactions, assuming perpetual inventory…

A: In perpetual method, cost of goods sold is determined at the time of each sale transaction, and…

Q: A small manufacturing or trading concern maintains its inventory on which system   a. Average…

A: Inventory means the stock of goods in hand . Goods means the thing in which the business deals and…

Q: What is the method of accounting of inventory in which the cost of goods is recorded each time a…

A: The cost of goods included the cost of goods that are sold during the period.

Q: Listed below are several terms and phrases associated with inventory measurement. Pair each item…

A: FIFO : First-in-first-out LIFO : Last-in-first-out Gross method : The sales / purchases are recorded…

Q: The two main inventory accounting systems are the a. perpetual and periodic. b. purchase and sale.…

A: Purchase and sale are the transaction made by the company. It is not an inventory system. Returns…

Q: 8. Under a perpetual inventory system, the adjusting entry to account for inventory shrinkage would…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Under the periodic inventory system, which of the following accounts is debited when inventory is…

A: Solution:- Under the periodic inventory system the following accounts is debited when inventory is…

Q: The balance of a perpetual inventory system at any given time is the _____ inventory. It must be…

A: In a perpetual inventory system, the inventory is revised after every transaction i.e. inventory is…

Q: 1. Calculate the value of closing inventory using the Weighted average cost inventory valuation…

A: As per weighted average cost inventory valuation method, cost per unit is calculated by dividing the…

Q: Inventory valuation is the cost associated with an entity's inventory at the end of a reporting…

A: Introduction: Inventory is a type of asset that is sold during daily business operations.. Inventory…

Q: Under periodic inventory system, at the time of sale of inventory the journal entry for cost of…

A: Periodic Inventory System Basically there are two types of inventory system are there.  One is…

Q: erms and phrases relating to concepts discussed in this chapter along with descriptions of those…

A: Key Inventory Terms and Phrases Description of Terms and Phrases 1. Net realizable value…

Q: The two main inventory accounting systems are the Perpetual and periodic. purchase and sale.…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: A periodic inventory system does not continually modify inventory amounts, but instead adjusts for…

A: The inventory under the periodic inventory system does not modify continuously but at the end. The…

Q: A company reports inventory using the lower of cost and net realizable value. Below is information…

A: a. Inventory Cost NRV Cost per unit Quantity Ending inventory A 37 39 37 13 $481 B 44 41 41…

Q: adjustment to the perpetual inventory records. Give any entry record the final disposition of any…

A: Perpetual inventory system is the system of recording the level of inventory at a continuously means…

Q: A physical inventory or count of inventory should be taken around the _____ to make sure that the…

A: Inventory are valued at lower of cost or Net realizable value. Inventory are current assets and…

Q: Under a periodic inventory system Oa. accounting records continuously disclose the amount of…

A: Periodic inventory is a system of inventory in which updates are made on a periodic basis.

Q: Journalize each of the following transactions assuming a perpetual inventory system.

A: For journal entries for the above transaction, refer below

Q: why both the "beginning inventory" and "ending inventory" figures both appear on the Income…

A: Periodic inventory system is a inventory system in which all purchase and sale transactions related…

Q: A method of inventory valuation wherein each particular item in the ending inventory is valued on…

A: Moving average inventory Method: Under this method, inventory is valued based on the average cost of…

Q: What is the inventory system called that continuously discloses the amount of inventory? Group of…

A: Solution: Under perpetual inventory system, inventory records are updated with each receipt and…

Q: Each statement describes a characteristic of the periodic and/or perpetual inventory systems. Some…

A: At the end of the accounting period, two inventory systems usually must be made in the accounts. The…

Q: What is the inventory system called that discloses the amount of inventory on hand ONLY at the end…

A: The periodic inventory system is an inventory system that involves a periodic physical inventory…

Q: The inventory valuation method which assumes that the items purchased first are the first items to…

A: Valuation of an inventory depends upon which items are sold first in the inventory cycle. This gives…

Q: Which of the following statements is true for a company that uses a periodic inventory system?…

A: Only inventory account is used for all the inventory transactions in the perpetual inventory system.…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.