At August 1 of the current year, there are 4,000 units at P15.10 each of merchandise inventory. During August, the following transactions occurred: August 2, purchased 5,000 units at P15.15 each; August 5, sold 4,000 units; August 8, sold 2,600 units; August 12, purchased 6,000 units at P15.20 each; August 16, sold 4,200 units; August 20, sold 3,800 units; August 24, purchased 6,000 units at P15.25 each; August 28, sold 2,200 units; and August 31, sold 3,600 units. Which of the following statements is correct? a.The goods available for sale using FIFO under periodic inventory system is the same as moving average under perpetual inventory system.. b.The goods available for sale using FIFO is greater under the perpetual inventory system than under the periodic inventory system. c.The goods available for sale using FIFO is greater under the periodic inventory system than under the perpetual inventory system. d.The goods available for sale in FIFO under perpetual inventory system is greater than in weighted average under perpetual inventory system.
At August 1 of the current year, there are 4,000 units at P15.10 each of merchandise inventory. During August, the following transactions occurred: August 2, purchased 5,000 units at P15.15 each; August 5, sold 4,000 units; August 8, sold 2,600 units; August 12, purchased 6,000 units at P15.20 each; August 16, sold 4,200 units; August 20, sold 3,800 units; August 24, purchased 6,000 units at P15.25 each; August 28, sold 2,200 units; and August 31, sold 3,600 units. Which of the following statements is correct? a.The goods available for sale using FIFO under periodic inventory system is the same as moving average under perpetual inventory system.. b.The goods available for sale using FIFO is greater under the perpetual inventory system than under the periodic inventory system. c.The goods available for sale using FIFO is greater under the periodic inventory system than under the perpetual inventory system. d.The goods available for sale in FIFO under perpetual inventory system is greater than in weighted average under perpetual inventory system.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At August 1 of the current year, there are 4,000 units at P15.10 each of merchandise inventory. During August, the following transactions occurred: August 2, purchased 5,000 units at P15.15 each; August 5, sold 4,000 units; August 8, sold 2,600 units; August 12, purchased 6,000 units at P15.20 each; August 16, sold 4,200 units; August 20, sold 3,800 units; August 24, purchased 6,000 units at P15.25 each; August 28, sold 2,200 units; and August 31, sold 3,600 units. Which of the following statements is correct?
a.The goods available for sale using FIFO under periodic inventory system is the same as moving average under perpetual inventory system..
b.The goods available for sale using FIFO is greater under the perpetual inventory system than under the periodic inventory system.
c.The goods available for sale using FIFO is greater under the periodic inventory system than under the perpetual inventory system.
d.The goods available for sale in FIFO under perpetual inventory system is greater than in weighted average under perpetual inventory system.
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