Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases, and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time. Last-in-Last-Out: In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items. To discuss: the response to Mr. P’s concern regarding LIFO inventory method.
Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases, and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time. Last-in-Last-Out: In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items. To discuss: the response to Mr. P’s concern regarding LIFO inventory method.
Solution Summary: The author explains that perpetual inventory system maintains the detailed records of every inventory transaction related to purchases, and sales on a continuous basis.
Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases, and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.
Last-in-Last-Out:
In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items.
To discuss: the response to Mr. P’s concern regarding LIFO inventory method.
IF THE GOVERNMENT COLLECTS MORE IN TAX REVENUE THAN IT SPENDS,
AND HOUSEHOLDS CONSUME MORE THAN THEY GET IN AFTER-TAX INCOME:
A. PRIVATE AND PUBLIC SAVING ARE BOTH POSITIVE.
B. PRIVATE AND PUBLIC SAVING ARE BOTH NEGATIVE.
C. PRIVATE SAVING IS NEGATIVE, BUT PUBLIC SAVING IS POSITIVE.
D. PRIVATE SAVING IS POSITIVE, BUT PUBLIC SAVING IS NEGATIVE.
Jones Company is preparing the financial statement dated December
31 of the current year. Ending inventory information.
Unit Cost When Net Realizable Value
Ite Quantity
m
onHand
Acquired
(Market) at Year-End
A
69
$ 20
$ 23
B
99
48
38
29
60
56
D
89
38
33
E
369
13
18
Required
1. Compute the valuation that should be used the current year ending
inventory using the LCM rule applied on an item-by-item basis.
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Accounting for Merchandising Operations Recording Purchases of Merchandise; Author: Socrat Ghadban;https://www.youtube.com/watch?v=iQp5UoYpG20;License: Standard Youtube License