An advantage of the perpetual inventory system is that a physical count of inventory is unnecessary. The periodic method requires a physical count to compute cost of goods sold.” Do you agree? Explain.
Answer to relevant Questions“Inventory errors are counterbalancing.” Explain. On January 15, 20X4, Violet Muir valued her inventory at cost, $41,000. Her statements are based on the calendar year, so you find it necessary to establish an inventory figure as of January 1, 20X4. You find that from ...Refer to the data in the preceding problem. Inventories were $71,000 on December 31, 20X0, and $120,000 on December 31, 20X1. Sales were $1,200,000. Prepare summary journal entries for 20X1 for sales and cost of goods sold ...Crowell Company uses the inventory method “cost or market, whichever is lower.” There were no sales or purchases during the periods indicated, although selling prices generally fluctuated in the same directions as ...Refer to the preceding problem. Suppose 100 extra units had been acquired on December 30, 20X8, for $80 each, a total of $8,000. How would net income and income taxes have been affected under FIFO and under LIFO? Show a ...
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