Concept explainers
Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.
In First-in-First-Out method, the cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items.
In Last-in-First-Out method, the cost of last purchased items are sold first. The value of the closing stock consists the initial purchased items.
Moving -average cost method: Under moving average cost method company calculate a new average after every purchases made. It is determined by dividing the cost of goods available for sale by the units on hand.
To Compute:
The ending inventory at September 30, and cost of goods sold using the FIFO method.
The ending inventory at September 30, and cost of goods sold using the LIFO method.
To Compute: The ending inventory at September 30, and cost of goods sold using the moving average-cost method.
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FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
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