Homework Answers
The answer is Periodic inventory system as it uses the following equation:
Opening Stock (known) + Purchases during the year (known) – Closing Stock (counted) = COGS (balancing figure)
The closing inventory is determined based on the physical count under periodic inventory system. All the purchases between the inventory counts are recorded in the "Purchases account" and not the cost of goods sold. At the time of physical count only, the cost of goods sold is determined using the above equation.
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Question 1 (1 point) Saved Under which accounting system is the cost of merchandise sold calculated...
If a perpetual inventory system is used and a physical count discloses a shortage, the cost of merchandise sold...
If a perpetual inventory system is used and a physical count discloses a shortage, the cost of merchandise sold should be debited and the merchandise inventory account credited. 1) True 2) False Although Allowance for Doubtful Accounts normally has a credit balance, it may have either a debit or a credit balance before adjusting entries are recorded at the end of the accounting period. 1) True 2) False
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and...
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and relurns occur and under periodic inventory system the Merchandise inventory account slays as its beginning balance unti the physical inventory is recorded at the and of the accounting period. True False Under the perpetual inventory systerm, in addition to making the entry to record a sala, a company wouid: A. Debit Marchandise Inventory and credit Cost of Goods Sold B. Debit Cost of Goods...
5. Assuming that costs are changing during the accounting period, under the last-in, first-out Inventory costing...
5. Assuming that costs are changing during the accounting period, under the last-in, first-out Inventory costing method, the amount of cost of goods sold calculated using the perpetual inventory system will usually differ or stay the same from the amount calculated using the periodic inventory system. 6. A company that uses the periodic inventory provides the following information: Beginning Inventory AED 12,000; Net Purchases AED 93,000 At the end of the period, the physical count of inventory reveals that AED...
True or False Unsold consigned merchandise should be included in the consignee’s inventory. If ending inventory...
True or False Unsold consigned merchandise should be included in the consignee’s inventory. If ending inventory for the year is understated, net income for the year is overstated. In the inventory for the year is overstated, owner’s equity reported on the balance sheet at the end of the year is understated. The specific identification inventory method should be used when the inventory consists of identical. Low cost units that are purchased and sold frequently. Of the three widely used inventory...
In regard to these answers- The merchandise sold by the business I choose is the dental...
In regard to these answers- The merchandise sold by the business I choose is the dental products that is products related to dental treatment.The business buys the inventory in order to sell the same to other doctors who are in the profession as a dental doctor.The relationship with a vendor usually depends on the quotation given by them, this business generally maintains long-standing relationship with its vendors and often negotiates for discounts.The FOB terms are looked after by the freight...
Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for...
Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as folows Jan. 1 Inventory 50 units $92 Mar. 10 Purchase 50 units $100 Aug. 30 Purchase 30 units@ $104 Dec. 12 Purchase 70 units $108 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods....
QUESTION 8 Which statement is false? Taking a physical inventory involves actually counting, weighing, or measuring...
QUESTION 8 Which statement is false? Taking a physical inventory involves actually counting, weighing, or measuring each kind of inventory on hand. No matter whether a periodic or perpetual inventory system is used, all companies need to determine inventory quantities at the end of each accounting period An inventory count is generally more accurate when goods are not being sold or received during the counting. Companies that use a perpetual inventory system must take a physical inventory to determine inventory...
16-20 Weston Jewellers uses the perpetual inventory system. On April 2. Weston sold merchandise with a...
16-20
Weston Jewellers uses the perpetual inventory system. On April 2. Weston sold merchandise with a cost of 407 314,152 for delivery of the merchandise. Calculate the amount of net sales revenue Round any intermediary G ions and your fa 4/15.30 Westonad 150 custom count with the t hers ) O A 514.902 OR $8,487 OC. 514.258 OD. $14,652 ance is $35.000. Which of the following ould be included in the . The Merchandise inventory account balance is $80,000. A...
Question 1 (1 point) Saved The rate of return calculated from an incremental analysis represents ...
Question 1 (1 point) Saved The rate of return calculated from an incremental analysis represents the rate of return obtainable on the extra investment of the higher initial cost alternative. e True False Question 2 (1 point) When the mutually exclusive alternatives under consideration have only disbursements (service alternatives), the do nothing alternative must be included so that a rate of return analysis can be conducted on the incremental cash flow True False Question 3 (1 point) When more than...
Assuming that costs are changing during the accounting period, under the last− in, first−out inventory costing...
Assuming that costs are changing during the accounting period, under the last− in, first−out inventory costing method, the amount of cost of goods sold calculated using the perpetual inventory system will usually differ from the amount calculated using the periodic inventory system. True or False
If a perpetual inventory system is used and a physical count discloses a shortage, the cost of merchandise sold should be debited and the merchandise inventory account credited. 1) True 2) False Although Allowance for Doubtful Accounts normally has a credit balance, it may have either a debit or a credit balance before adjusting entries are recorded at the end of the accounting period. 1) True 2) False
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and relurns occur and under periodic inventory system the Merchandise inventory account slays as its beginning balance unti the physical inventory is recorded at the and of the accounting period. True False Under the perpetual inventory systerm, in addition to making the entry to record a sala, a company wouid: A. Debit Marchandise Inventory and credit Cost of Goods Sold B. Debit Cost of Goods...
5. Assuming that costs are changing during the accounting period, under the last-in, first-out Inventory costing method, the amount of cost of goods sold calculated using the perpetual inventory system will usually differ or stay the same from the amount calculated using the periodic inventory system. 6. A company that uses the periodic inventory provides the following information: Beginning Inventory AED 12,000; Net Purchases AED 93,000 At the end of the period, the physical count of inventory reveals that AED...
Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as folows Jan. 1 Inventory 50 units $92 Mar. 10 Purchase 50 units $100 Aug. 30 Purchase 30 units@ $104 Dec. 12 Purchase 70 units $108 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods....
QUESTION 8 Which statement is false? Taking a physical inventory involves actually counting, weighing, or measuring each kind of inventory on hand. No matter whether a periodic or perpetual inventory system is used, all companies need to determine inventory quantities at the end of each accounting period An inventory count is generally more accurate when goods are not being sold or received during the counting. Companies that use a perpetual inventory system must take a physical inventory to determine inventory...
16-20
Weston Jewellers uses the perpetual inventory system. On April 2. Weston sold merchandise with a cost of 407 314,152 for delivery of the merchandise. Calculate the amount of net sales revenue Round any intermediary G ions and your fa 4/15.30 Westonad 150 custom count with the t hers ) O A 514.902 OR $8,487 OC. 514.258 OD. $14,652 ance is $35.000. Which of the following ould be included in the . The Merchandise inventory account balance is $80,000. A...
Question 1 (1 point) Saved The rate of return calculated from an incremental analysis represents the rate of return obtainable on the extra investment of the higher initial cost alternative. e True False Question 2 (1 point) When the mutually exclusive alternatives under consideration have only disbursements (service alternatives), the do nothing alternative must be included so that a rate of return analysis can be conducted on the incremental cash flow True False Question 3 (1 point) When more than...
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