Listed below is the inventory, purchases and sales for the month of July 2021: Units RM per unit Inventory Purchases 48 20 52 24 Sales 72 40 Purchases 36 30 Sales 40 50 Required: (a) Compute cost of goods sold and inventory on hand by using average-cost method. Show both for perpetual and periodic inventory system (round to 2 decimal places). (b) Freight on board (FOB) is a designation that is used to indicate when liability and ownership of goods is transferred from a seller to a buyer. What is the difference between FOB shipping point and FOB destination?
Listed below is the inventory, purchases and sales for the month of July 2021: Units RM per unit Inventory Purchases 48 20 52 24 Sales 72 40 Purchases 36 30 Sales 40 50 Required: (a) Compute cost of goods sold and inventory on hand by using average-cost method. Show both for perpetual and periodic inventory system (round to 2 decimal places). (b) Freight on board (FOB) is a designation that is used to indicate when liability and ownership of goods is transferred from a seller to a buyer. What is the difference between FOB shipping point and FOB destination?
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 3PEA: Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual...
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![QUESTION 4
1. Listed below is the inventory, purchases and sales for the month of July 2021:
RM per unit
20
Units
48
Inventory
Purchases
52
24
Sales
72
40
Purchases
Sales
36
30
40
50
Required:
(a) Compute cost of goods sold and inventory on hand by using average-cost method.
Show both for perpetual and periodic inventory system (round to 2 decimal
places).
(b) Freight on board (FOB) is a designation that is used to indicate when liability and
owncrship of goods is transferred from a scller to a buyer. What is the difference
between FOB shipping point and FOB destination?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F369eb33d-5550-4191-a702-94922b8cf6c1%2F6134e9c7-3971-4163-847b-a4091c2c0896%2Flan6jv9_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 4
1. Listed below is the inventory, purchases and sales for the month of July 2021:
RM per unit
20
Units
48
Inventory
Purchases
52
24
Sales
72
40
Purchases
Sales
36
30
40
50
Required:
(a) Compute cost of goods sold and inventory on hand by using average-cost method.
Show both for perpetual and periodic inventory system (round to 2 decimal
places).
(b) Freight on board (FOB) is a designation that is used to indicate when liability and
owncrship of goods is transferred from a scller to a buyer. What is the difference
between FOB shipping point and FOB destination?
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