“An inventory profit is a fictitious profit.” Do you agree? Explain.
Answer to relevant QuestionsLIFO can produce absurd inventory valuations. Why? 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. Coppola Company had sales of $19 million during the year. The goods cost Coppola $17 million. Give the journal entry or entries at the time of sale under the perpetual and periodic inventory systems. An earthquake caused heavy damage to the Sellwood Antique Store on May 3, 20X8. All merchandise was destroyed. Some accounting data are missing. In conjunction with an insurance investigation, you have been asked to estimate ...Parr Building Supply began 20X9 with inventory of $240,000. Parr’s 20X9 sales were $1,200,000, purchases of inventory totaled $1,035,000, and ending inventory was $275,000. 1. Prepare a statement of gross profit for 20X9. ...
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