Under a perpetual inventory system: Multiple Choice Cost of good sold is recorded with a period-end adjusting entry. Purchase discounts are not recorded. Inventory purchases are recorded only at the end of the period. Cost of goods sold is recorded with each sale.

Under a perpetual inventory system: Multiple Choice Cost of good sold is recorded with a period-end adjusting entry. Purchase discounts are not recorded. Inventory purchases are recorded only at the end of the period. Cost of goods sold is recorded with each sale.

Name: shboardE W Boilermaker unlimi..uiz 6Under a perpetual inventory syste
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Description: shboardE W Boilermaker unlimi..uiz 6Under a perpetual inventory system:Multiple ChoiceCost of good sold is recorded with a period-end adjusting entry.Purchase discounts are not recorded.Inventory purchases are recorded only at the end of the period.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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31. Under a perpetual inventory system, a.a physical count is required to determine cost of merchandise on hand b.increases in inventory resulting from purchases are debited to Purchases c.accounting records continuously disclose the amount of inventory d.the purchases returns and allowances account is credited when goods are returned to vendors
Which statements are true? 1. Perpetual system keeps only costs of inventories up-to-date, whereas the periodic system keeps only units of inventory up-to-date. 2. Perpetual system records the cost of goods sold for every sale, whereas the periodic system computes cost of goods sold only at the end of the period. 3. FIFO periodic system will result in the same amount of cost of goods sold and cost of ending inventory as FIFO perpetual system. 4. Physical count is needed for periodic system but not perpetual system.
Hello, This question is using a periodic inventory system. For this question, how do I determine the cost of ending inventory and cost of goods sold using: a) First in, First out b) Average cost Thanks
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record (in the same format as the example table I have attached) using the first-in, first-out method. The data needed is provided in the list of transactions/units/totals attached 2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on the account and date your journal entry March 31. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost as of March 31.
3.Which of the following transactions would not result in an adjustment to the inventory account under a perpetual inventory system? A)The return of merchandise by a customer. B)The sale of merchandise for cash. C)The sale of merchandise on credit. D)The receipt of payment from a customer within the discount period.
26. Which of the following statements is true regarding how cost of goods sold is determined under the perpetual inventory system using LIFO? a. The units sold are multiplied by the first costs in inventory. b. The units sold are multiplied by the last costs in inventory. c. Multiply the units in ending inventory by the last costs in inventory. This amount is subtracted from cost of goods available for sale. d. The cost of goods available for sale is divided by total units to get an average cost which is multiplied by units sold.
why both the "beginning inventory" and "ending inventory" figures both appear on the Income Statement of the worksheet for the Periodic Inventory Method.
Identify which of the following statement is correct for perpetual inventory system? Under the perpetual Inventory system, on the purchase of Inventory purchase account is debited. When valuing ending Inventory under a perpetual Inventory system, oldest units purchased during the period using FIFO are allocated to the cost of goods sold when units are sold. When valuing ending Inventory under a perpetual Inventory system, weighted average cost method requires that a new weighted average unit cost be calculated after every sale. 09/03/2024 15:01 When valuing ending Inventory under a perpetual inventory system, valuation using weighted average is the same as the valuation using weighted average under the periodic Inventory system.
In the periodic inventory system, all purchases of merchandise during the period is recorded on what account?
The following information relates to the retail inventory method used by Jeffress Company: 1. Compute the ending inventory by the retail inventory method using the following cost flow assumptions (round the cost-to-retail ratio to 3 decimal places): a. FIFO, b. average cost, c. LIFO d. lower of cost or market (based on average cost) 2. Next Level What assumptions are necessary for the retail in,,entory method to produce accurate estimates of ending inventory?
Which of the following is not a step in the retail inventory method process? a.Compute the cost of goods available for sale. b.Compute the ending inventory at retail by subtracting sales at retail from goods available for sale at retail. c.Estimate the cost of the ending inventory by multiplying the ending inventory at retail by the cost-to-retail ratio. d.Compute the cost-to-retail ratio.
In a perpetual inventory system, purchases of merchandise on account are recorded by debiting: a Cost of Goods Sold. b Accounts Payable. c Purchases. d Inventory.