Which statements are true? 1. Perpetual system keeps only costs of inventories up-to-date, whereas the periodic system keeps only units of inventory up-to-date. 2. Perpetual system records the cost of goods sold for every sale, whereas the periodic system computes cost of goods sold only at the end of the period. 3. FIFO periodic system will result in the same amount of cost of goods sold and cost of ending inventory as FIFO perpetual system. 4. Physical count is needed for periodic system but not perpetual system
Which statements are true? 1. Perpetual system keeps only costs of inventories up-to-date, whereas the periodic system keeps only units of inventory up-to-date. 2. Perpetual system records the cost of goods sold for every sale, whereas the periodic system computes cost of goods sold only at the end of the period. 3. FIFO periodic system will result in the same amount of cost of goods sold and cost of ending inventory as FIFO perpetual system. 4. Physical count is needed for periodic system but not perpetual system
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 44E: Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual...
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Which statements are true?
1. Perpetual system keeps only costs of inventories up-to-date, whereas the periodic system keeps only units of inventory up-to-date.
2. Perpetual system records the cost of goods sold for every sale, whereas the periodic system computes cost of goods sold only at the end of the period.
3. FIFO periodic system will result in the same amount of cost of goods sold and cost of ending inventory as FIFO perpetual system.
4. Physical count is needed for periodic system but not perpetual system.
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