Tom Pryor is conducting an audit of the computerized inventory system used by Zix Corporation. Tom has inserted hypothetical data into the computer program that tracks inventory on a perpetual basis. Below are the hypotheical data inserted by Tom: Transaction Beginning inventory Purchase, day 1 Sale, day 2 Purchase, day 3 Sale, day 4 Units 10 5 6 8 Cost per unit $10 $11 $12 The computer program returned the following ending inventory values: FIFO perpetual, $96 $80 Moving average, $88 LIFO perpetual,

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Tom Pryor is conducting an audit of the computerized inventory system used by Zix Corporation. Tom has inserted
hypothetical data into the computer program that tracks inventory on a perpetual basis. Below are the hypotheical
data inserted by Tom:
Transaction
Beginning inventory
Purchase, day 1
Sale, day 2
Purchase, day 3.
Sale, day 4
Units
10
5
669
Cost per unit
$10
$11
$12
The computer program returned the following ending inventory values: FIFO perpetual, $96 LIFO perpetual,
$80 Moving average, $88
Which of the three values appears to be incorrect, and what "error" might be causing this condition?
Transcribed Image Text:Tom Pryor is conducting an audit of the computerized inventory system used by Zix Corporation. Tom has inserted hypothetical data into the computer program that tracks inventory on a perpetual basis. Below are the hypotheical data inserted by Tom: Transaction Beginning inventory Purchase, day 1 Sale, day 2 Purchase, day 3. Sale, day 4 Units 10 5 669 Cost per unit $10 $11 $12 The computer program returned the following ending inventory values: FIFO perpetual, $96 LIFO perpetual, $80 Moving average, $88 Which of the three values appears to be incorrect, and what "error" might be causing this condition?
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