under the system the ending inventory and cost of goods sold are determined at the end of the accounting period, when a physical inventory is taken. ________________

Q: Assuming a perpetual inventory system and the last-in, first-out method, determine (a) the cost of…

A: Question is of Last -in, First - out method.  So, when units are sold on September 5, there were…

Q: All descriptions reveal the characteristics of a periodic inventory system, EXCEPT: Merchandise…

A: The correct option is: Inventory record is always up-to-date

Q: When using a perpetual inventory system and the weighted-average inventory costing method, when does…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: (A) Assume that the company uses the FIFO method. What is the value of the ending inventory at…

A: 1. FIFO method: Under this method and periodic inventory system is used, the ending inventory stock…

Q: The company uses the specific identification cost method for inventory valuation. Calculate the cost…

A: Purchases Sales Balance Date Quantity Unit Cost Value Quantity Unit Cost Value Quantity Unit…

Q: Refer to the information in Exercise 6-7 and assume the periodic inventory system is used. Determine…

A: Introduction: FIFO: FIFO stands for First in First out  Which is used in valuating inventory.

Q: Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods.

A: In periodic inventory system inventory valuation is done at the end of the period and entries for…

Q: Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing…

A: LIFO:LIFO stands for land in, first out. It is inventory valuation method in which the latest…

Q: By following the LIFO process calculate the Ending inventory value.

A: Introduction: LIFO: LIFO stands for Last in First out. Which means last received inventory to be…

Q: Is an adjusting entry needed for inventory shrinkage when using the periodic inventory system?…

A: Definition:

Q: What is inventory shrinkage? Describe the adjusting entry that would be recorded to account for…

A: Inventory shrinkage: When there is a difference between inventory as per books and actual inventory…

Q: Maxell Company uses the FIFO method to assign costs to inventory and cost of goods sold. The company…

A: Periodic inventory is a system of inventory valuation where the business’s inventory and cost of…

Q: Record the end of period adjustment to determine the amount of cost of goods sold, including any…

A: The adjustment entry is to be made under periodic inventory system at year end to record cost of…

Q: e entry to record the return of $250 of inventory to a supplier under the perpetual inventory system…

A: Solution: The entry to record the return of $250 of inventory to a supplier under the perpetual…

Q: Compute for the cost of ending inventory and cost of goods sold using: a. FIFO - periodic b.…

A: The following computations are done for Extreme Company.

Q: Using FIFO (a) Compute the cost of ending inventory. (b) Compute the cost of goods sold for the…

A:

Q: At the end of the accounting period, the correct entry in the general journal to adjust for…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Regardless of the inventory costing system used, cost of goods available for sale must be allocated…

A: Cost of good available comprises of beginning inventory and purchases during the period and are…

Q: Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.

A: Lets start with basic understanding. There are two system for inventory valuation which are, (1)…

Q: The cost of inventory sold during the current year is clansified as atri in the O Liability, Balance…

A: The Inventory sold will create an income for the for the firm. Whereas, the cost of goods that are…

Q: Identify whether each description best applies to a periodic or a perpetual inventory system.…

A: Given description is:  Requires an adjusting entry to record inventory shrinkage.

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: Compute the cost of the ending inventory and the cost of goods sold under FIFO LIFO • average-cost…

A:

Q: What are the main differences between periodic inventory system and perpetual inventory system?…

A: Periodic inventory system: A periodic inventory system may be a variety of inventory valuation…

Q: of goods sold for the FIFO and the LIFO method based on the information

A: FIFO stands for First in first out . It means the inventory which is purchased first will be sold…

Q: A company that uses a perpetual inventory system purchased inventory on account and later returned…

A: Perpetual inventory system: It is a method of inventory management that records real time…

Q: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when…

A: LIFO Method It is the method used for recording Inventory. Under this method, it is assumed that the…

Q: Understand and apply rules for measurement of inventory at the end of the reporting period.

A:

Q: Describe in words the journal entries that are made ina perpetual inventory system when inventory is…

A: Perpetual inventory system provides a running balance of cost of goods available for sale and cost…

Q: accou method at the end of each period, as if it uses a periodic inventory system. Assume its…

A: Given : Transactions Units Unit Cost Beginning inventory, January 1  200 $ 30 Transactions…

Q: Manual, what method is used in computing the ending inventory of materials and supplies?   First-in,…

A: there are different methods available for valuation of the inventory is available. for most of the…

Q: Compute the cost of the ending inventory and the cost of goods sold under FIFÓ, LIFÓ, and…

A:

Q: The amount shown in the adjustments credit column for Merchandise Inventory on the worksheet​ is:…

A: COGS is an expense item computed by subtracting the closing stock from the sum of the opening stock…

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: The cost of goods sold can be determined only after a physical count of inventory on hand under the…

A: Cost of goods sold can be determined at each level of transaction in perpetual inventory but in…

Q: The costs to be accounted for consist of which of the following? costs added during the period…

A: >Process Costing includes costing for each process  accounted for as "Work In Process" accounts.…

Q: Assuming that a perpetual inventory system is used, determine the cost of goods sold and the ending…

A: Inventory valuation refers to the methods used by the company to determine the value of its…

Q: Required: Compute the cost of the ending inventory and the cost of goods sold under FIFO Method.

A: Given:              Opening Inventory 200 units @ $5              Purchase 300 Units @ $6…

Q: Which of the following accounts would be closed at the end of the year using the perpetual inventory…

A: Perpetual Inventory System refers to the inventory system that maintains the detailed records of…

Q: The cost of goods available for sale is allocated between * beginning inventory and ending…

A: Gross profit = Sales - Cost of goods sold  Sales = Cost of goods sold  + Gross profit  Cost of goods…

Q: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, what would the…

A: The cost of goods sold is the total amount your company paid as a cost directly related to the sale…

Q: If consignment inventory is unsold at the end of the period, who reports the ending inventory on the…

A: Consignment inventory is a property of consignor and the consignor will have all the rights with…

Q: Under this inventory system, the “Inventory” account is updated each time a purchase or sale is…

A: Solution: Under perpetual inventory system, inventory is updated with every purchase and sale. Cost…

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: Explain the gross profit method of estimating ending inventory.

A: Gross Profit: It refers to the difference between the sales and the cost of goods sold.

Q: In Periodic inventory system the goods are a. Not recorded till the time cost of goods are known b.…

A: For calculating the accurate inventory costs and maintaining the appropriate inventory…

Q: Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO. FIFO LIFO…

A: The cost of goods sold and ending inventory under periodic inventory system computed at the period…

Q: December 31 under each of the following methods?

A: Cost of goods sold refers to the amount of expenses involved in producing the certain volume of…

Q: Explain the retail inventory method of estimating ending inventory.

A: Retail inventory method takes into account all the retail amounts that is, the current selling…

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.