Perpetual Inventory system is an inventory system in which a organization continuously update its inventory records. All the movements related to inventory are updated continuously such as purchase quantity, sales quantity, and purchase or sales return etc. There are several methods of calculating the value of inventory in closing stock which are as below: FIFO method (First In First Out) is the most using method of inventory valuation . The quantity which comes first in stock will be sold first. In closing inventory the quantity will be counted from the last purchase and so on. LIFO method (Last In First Out) is the method in which the quantity which purchase in last before sale transaction will be sold first. In closing inventory the quantity will be counted from the beginning inventory and purchase thereafter. Weighted Average method is the most commonly used method after FIFO method. In weighted average the quantity of all purchases and beginning inventory is clubbed and then a weighted average rate is calculated and closing inventory is valued at weighted average rate. Specific Identification method is the method in which the quantity is specifically identified that from which lot or purchases the closing stock is available and the closing inventory is valued by taking rates and quantities of that specific lot(s) from which closing inventory is available. Under perpetual method a job card is prepared for each lot and calculation is done for each lot/transactions accordingly. Requirement-1: To Calculate: In the given question we have to calculate the following details under perpetual inventory system: Cost of goods and quantity available for sale

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Answer 1

Question

Chapter 6, Problem 3BPSB

To determine

Perpetual Inventory system is an inventory system in which a organization continuously update its inventory records. All the movements related to inventory are updated continuously such as purchase quantity, sales quantity, and purchase or sales return etc.

There are several methods of calculating the value of inventory in closing stock which are as below:

FIFO method (First In First Out) is the most using method of inventory valuation. The quantity which comes first in stock will be sold first. In closing inventory the quantity will be counted from the last purchase and so on.

LIFO method (Last In First Out) is the method in which the quantity which purchase in last before sale transaction will be sold first. In closing inventory the quantity will be counted from the beginning inventory and purchase thereafter.

Weighted Average method is the most commonly used method after FIFO method. In weighted average the quantity of all purchases and beginning inventory is clubbed and then a weighted average rate is calculated and closing inventory is valued at weighted average rate.

Specific Identification method is the method in which the quantity is specifically identified that from which lot or purchases the closing stock is available and the closing inventory is valued by taking rates and quantities of that specific lot(s) from which closing inventory is available.

Under perpetual method a job card is prepared for each lot and calculation is done for each lot/transactions accordingly.

Requirement-1:

To Calculate:

In the given question we have to calculate the following details under perpetual inventory system:

Cost of goods and quantity available for sale

To determine

Requirement-2:

To calculate:

We have to calculate units in closing stock under perpetual inventory system.

To determine

Requirement-3:

To calculate:

We have to calculate cost of closing inventory using FIFO, LIFO, Weighted Average and Specific Identification method.

To determine

Requirement-4:

To calculate:

We have to calculate gross profit under FIFO, LIFO, and Weighted Average and Specific Identification method under perpetual inventory system.

To determine

Requirement-5:

To determine:

We have to determine that manager will prefer valuation method as it earns on percentage of gross profit.

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Summary: You will investigate a case of asset theft involving several fraudsters for this assignment. The case offers a chance to assess an organization's corporate governance, fraud prevention, and risk factors. Get ready: Moha Computer Services Limited Links to an external website: Finish the media activity. The scenario you need to finish the assignment is provided by this media activity. Directions: Make a four to five-page paper that covers the following topics. Management must be questioned by an auditor regarding the efficacy of internal controls and the potential for fraud. A number of warning signs point to the potential for fraud in this instance. List at least three red flags (risk factors for fraud) that apply to the Moha case. Sort them into three groups: opportunities, pressures/incentives, and (ethical) attitudes/justifications. Determine which people and organizations were impacted by Moha Computer Services Limited's enormous scam. Describe the fraud's financial and…

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Answer 2

Question

Chapter 6, Problem 3BPSB

To determine

Perpetual Inventory system is an inventory system in which a organization continuously update its inventory records. All the movements related to inventory are updated continuously such as purchase quantity, sales quantity, and purchase or sales return etc.

There are several methods of calculating the value of inventory in closing stock which are as below:

FIFO method (First In First Out) is the most using method of inventory valuation. The quantity which comes first in stock will be sold first. In closing inventory the quantity will be counted from the last purchase and so on.

LIFO method (Last In First Out) is the method in which the quantity which purchase in last before sale transaction will be sold first. In closing inventory the quantity will be counted from the beginning inventory and purchase thereafter.

Weighted Average method is the most commonly used method after FIFO method. In weighted average the quantity of all purchases and beginning inventory is clubbed and then a weighted average rate is calculated and closing inventory is valued at weighted average rate.

Specific Identification method is the method in which the quantity is specifically identified that from which lot or purchases the closing stock is available and the closing inventory is valued by taking rates and quantities of that specific lot(s) from which closing inventory is available.

Under perpetual method a job card is prepared for each lot and calculation is done for each lot/transactions accordingly.

Requirement-1:

To Calculate:

In the given question we have to calculate the following details under perpetual inventory system:

Cost of goods and quantity available for sale

To determine

Requirement-2:

To calculate:

We have to calculate units in closing stock under perpetual inventory system.

To determine

Requirement-3:

To calculate:

We have to calculate cost of closing inventory using FIFO, LIFO, Weighted Average and Specific Identification method.

To determine

Requirement-4:

To calculate:

We have to calculate gross profit under FIFO, LIFO, and Weighted Average and Specific Identification method under perpetual inventory system.

To determine

Requirement-5:

To determine:

We have to determine that manager will prefer valuation method as it earns on percentage of gross profit.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 3BPSB

To determine

Perpetual Inventory system is an inventory system in which a organization continuously update its inventory records. All the movements related to inventory are updated continuously such as purchase quantity, sales quantity, and purchase or sales return etc.

There are several methods of calculating the value of inventory in closing stock which are as below:

FIFO method (First In First Out) is the most using method of inventory valuation. The quantity which comes first in stock will be sold first. In closing inventory the quantity will be counted from the last purchase and so on.

LIFO method (Last In First Out) is the method in which the quantity which purchase in last before sale transaction will be sold first. In closing inventory the quantity will be counted from the beginning inventory and purchase thereafter.

Weighted Average method is the most commonly used method after FIFO method. In weighted average the quantity of all purchases and beginning inventory is clubbed and then a weighted average rate is calculated and closing inventory is valued at weighted average rate.

Specific Identification method is the method in which the quantity is specifically identified that from which lot or purchases the closing stock is available and the closing inventory is valued by taking rates and quantities of that specific lot(s) from which closing inventory is available.

Under perpetual method a job card is prepared for each lot and calculation is done for each lot/transactions accordingly.

Requirement-1:

To Calculate:

In the given question we have to calculate the following details under perpetual inventory system:

Cost of goods and quantity available for sale

To determine

Requirement-2:

To calculate:

We have to calculate units in closing stock under perpetual inventory system.

To determine

Requirement-3:

To calculate:

We have to calculate cost of closing inventory using FIFO, LIFO, Weighted Average and Specific Identification method.

To determine

Requirement-4:

To calculate:

We have to calculate gross profit under FIFO, LIFO, and Weighted Average and Specific Identification method under perpetual inventory system.

To determine

Requirement-5:

To determine:

We have to determine that manager will prefer valuation method as it earns on percentage of gross profit.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 3BPSB

To determine

Perpetual Inventory system is an inventory system in which a organization continuously update its inventory records. All the movements related to inventory are updated continuously such as purchase quantity, sales quantity, and purchase or sales return etc.

There are several methods of calculating the value of inventory in closing stock which are as below:

FIFO method (First In First Out) is the most using method of inventory valuation. The quantity which comes first in stock will be sold first. In closing inventory the quantity will be counted from the last purchase and so on.

LIFO method (Last In First Out) is the method in which the quantity which purchase in last before sale transaction will be sold first. In closing inventory the quantity will be counted from the beginning inventory and purchase thereafter.

Weighted Average method is the most commonly used method after FIFO method. In weighted average the quantity of all purchases and beginning inventory is clubbed and then a weighted average rate is calculated and closing inventory is valued at weighted average rate.

Specific Identification method is the method in which the quantity is specifically identified that from which lot or purchases the closing stock is available and the closing inventory is valued by taking rates and quantities of that specific lot(s) from which closing inventory is available.

Under perpetual method a job card is prepared for each lot and calculation is done for each lot/transactions accordingly.

Requirement-1:

To Calculate:

In the given question we have to calculate the following details under perpetual inventory system:

Cost of goods and quantity available for sale

To determine

Requirement-2:

To calculate:

We have to calculate units in closing stock under perpetual inventory system.

To determine

Requirement-3:

To calculate:

We have to calculate cost of closing inventory using FIFO, LIFO, Weighted Average and Specific Identification method.

To determine

Requirement-4:

To calculate:

We have to calculate gross profit under FIFO, LIFO, and Weighted Average and Specific Identification method under perpetual inventory system.

To determine

Requirement-5:

To determine:

We have to determine that manager will prefer valuation method as it earns on percentage of gross profit.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 3BPSB

To determine

Perpetual Inventory system is an inventory system in which a organization continuously update its inventory records. All the movements related to inventory are updated continuously such as purchase quantity, sales quantity, and purchase or sales return etc.

There are several methods of calculating the value of inventory in closing stock which are as below:

FIFO method (First In First Out) is the most using method of inventory valuation. The quantity which comes first in stock will be sold first. In closing inventory the quantity will be counted from the last purchase and so on.

LIFO method (Last In First Out) is the method in which the quantity which purchase in last before sale transaction will be sold first. In closing inventory the quantity will be counted from the beginning inventory and purchase thereafter.

Weighted Average method is the most commonly used method after FIFO method. In weighted average the quantity of all purchases and beginning inventory is clubbed and then a weighted average rate is calculated and closing inventory is valued at weighted average rate.

Specific Identification method is the method in which the quantity is specifically identified that from which lot or purchases the closing stock is available and the closing inventory is valued by taking rates and quantities of that specific lot(s) from which closing inventory is available.

Under perpetual method a job card is prepared for each lot and calculation is done for each lot/transactions accordingly.

Requirement-1:

To Calculate:

In the given question we have to calculate the following details under perpetual inventory system:

Cost of goods and quantity available for sale

To determine

Requirement-2:

To calculate:

We have to calculate units in closing stock under perpetual inventory system.

To determine

Requirement-3:

To calculate:

We have to calculate cost of closing inventory using FIFO, LIFO, Weighted Average and Specific Identification method.

To determine

Requirement-4:

To calculate:

We have to calculate gross profit under FIFO, LIFO, and Weighted Average and Specific Identification method under perpetual inventory system.

To determine

Requirement-5:

To determine:

We have to determine that manager will prefer valuation method as it earns on percentage of gross profit.

Answer 6

Chapter 6, Problem 3BPSB

To determine

Perpetual Inventory system is an inventory system in which a organization continuously update its inventory records. All the movements related to inventory are updated continuously such as purchase quantity, sales quantity, and purchase or sales return etc.

There are several methods of calculating the value of inventory in closing stock which are as below:

FIFO method (First In First Out) is the most using method of inventory valuation. The quantity which comes first in stock will be sold first. In closing inventory the quantity will be counted from the last purchase and so on.

LIFO method (Last In First Out) is the method in which the quantity which purchase in last before sale transaction will be sold first. In closing inventory the quantity will be counted from the beginning inventory and purchase thereafter.

Weighted Average method is the most commonly used method after FIFO method. In weighted average the quantity of all purchases and beginning inventory is clubbed and then a weighted average rate is calculated and closing inventory is valued at weighted average rate.

Specific Identification method is the method in which the quantity is specifically identified that from which lot or purchases the closing stock is available and the closing inventory is valued by taking rates and quantities of that specific lot(s) from which closing inventory is available.

Under perpetual method a job card is prepared for each lot and calculation is done for each lot/transactions accordingly.

Requirement-1:

To Calculate:

In the given question we have to calculate the following details under perpetual inventory system:

Cost of goods and quantity available for sale

Answer 7

Chapter 6, Problem 3BPSB

To determine

Perpetual Inventory system is an inventory system in which a organization continuously update its inventory records. All the movements related to inventory are updated continuously such as purchase quantity, sales quantity, and purchase or sales return etc.

There are several methods of calculating the value of inventory in closing stock which are as below:

FIFO method (First In First Out) is the most using method of inventory valuation. The quantity which comes first in stock will be sold first. In closing inventory the quantity will be counted from the last purchase and so on.

LIFO method (Last In First Out) is the method in which the quantity which purchase in last before sale transaction will be sold first. In closing inventory the quantity will be counted from the beginning inventory and purchase thereafter.

Weighted Average method is the most commonly used method after FIFO method. In weighted average the quantity of all purchases and beginning inventory is clubbed and then a weighted average rate is calculated and closing inventory is valued at weighted average rate.

Specific Identification method is the method in which the quantity is specifically identified that from which lot or purchases the closing stock is available and the closing inventory is valued by taking rates and quantities of that specific lot(s) from which closing inventory is available.

Under perpetual method a job card is prepared for each lot and calculation is done for each lot/transactions accordingly.

Requirement-1:

To Calculate:

In the given question we have to calculate the following details under perpetual inventory system:

Cost of goods and quantity available for sale

Answer 8

To determine

Requirement-2:

To calculate:

We have to calculate units in closing stock under perpetual inventory system.

Answer 9

To determine

Requirement-2:

To calculate:

We have to calculate units in closing stock under perpetual inventory system.

Answer 10

To determine

Requirement-3:

To calculate:

We have to calculate cost of closing inventory using FIFO, LIFO, Weighted Average and Specific Identification method.

Answer 11

To determine

Requirement-3:

To calculate:

We have to calculate cost of closing inventory using FIFO, LIFO, Weighted Average and Specific Identification method.

Answer 12

To determine

Requirement-4:

To calculate:

We have to calculate gross profit under FIFO, LIFO, and Weighted Average and Specific Identification method under perpetual inventory system.

Answer 13

To determine

Requirement-4:

To calculate:

We have to calculate gross profit under FIFO, LIFO, and Weighted Average and Specific Identification method under perpetual inventory system.

Answer 14

To determine

Requirement-5:

To determine:

We have to determine that manager will prefer valuation method as it earns on percentage of gross profit.

Answer 15

To determine

Requirement-5:

To determine:

We have to determine that manager will prefer valuation method as it earns on percentage of gross profit.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 6 - Prob. 1DQ Ch. 6 - 2. Where is the amount of merchandise inventory...Ch. 6 - Prob. 3DQ Ch. 6 - Prob. 4DQ Ch. 6 - What does the full disclosure principle prescribe...Ch. 6 - Prob. 6DQ Ch. 6 - Prob. 7DQ Ch. 6 - Prob. 8DQ Ch. 6 - Prob. 9DQ Ch. 6 - What is the meaning of market as it is used in...

Concept explainers

Videos

Requirement-2:

To calculate:

We have to calculate units in closing stock under perpetual inventory system.

Requirement-3:

To calculate:

We have to calculate cost of closing inventory using FIFO, LIFO, Weighted Average and Specific Identification method.

Requirement-4:

To calculate:

We have to calculate gross profit under FIFO, LIFO, and Weighted Average and Specific Identification method under perpetual inventory system.

Requirement-5:

To determine:

We have to determine that manager will prefer valuation method as it earns on percentage of gross profit.

Want to see the full answer?

Chapter 6 Solutions

Concept explainers

Videos

Requirement-2: To calculate: We have to calculate units in closing stock under perpetual inventory system.

Requirement-3: To calculate: We have to calculate cost of closing inventory using FIFO, LIFO, Weighted Average and Specific Identification method.

Requirement-4: To calculate: We have to calculate gross profit under FIFO, LIFO, and Weighted Average and Specific Identification method under perpetual inventory system.

Requirement-5: To determine: We have to determine that manager will prefer valuation method as it earns on percentage of gross profit.

Want to see the full answer?

Chapter 6 Solutions

Requirement-2:

To calculate:

We have to calculate units in closing stock under perpetual inventory system.

Requirement-3:

To calculate:

We have to calculate cost of closing inventory using FIFO, LIFO, Weighted Average and Specific Identification method.

Requirement-4:

To calculate:

We have to calculate gross profit under FIFO, LIFO, and Weighted Average and Specific Identification method under perpetual inventory system.

Requirement-5:

To determine:

We have to determine that manager will prefer valuation method as it earns on percentage of gross profit.