
Concept explainers
Concept Introduction:
Periodic Inventory System:
It updates the closing inventory in the ledger after the physical count is done.
Last in first out (LIFO):
It is the
First in first out (FIFO):
It is the inventory valuation method in which inventory purchased in the beginning of the year is first sold out. Hence the closing inventory count is done from end.
Weighted Average:
It is the inventory valuation in which total value of inventory is divided by the total inventory.
To compute:
To compute the number and total costs of units available for sale.
Concept Introduction:
Last in first out (LIFO):
It is the inventory valuation method in which inventory purchased at the end is first sold out. Hence the closing inventory count is done from beginning.
First in first out (FIFO):
It is the inventory valuation method in which inventory purchased in the beginning of the year is first sold out. Hence the closing inventory count is done from end.
Weighted Average:
It is the inventory valuation in which total value of inventory is divided by the total inventory.
To Compute:
To compute the amounts assigned to ending inventory and cost of godos sold.

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Chapter 6 Solutions
Fundamental Accounting Principles
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