In a periodic inventory system, why must inventory be physically counted to determine cost of goods sold?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 73% (15 reviews)
In a periodic inventory system cost of goods sold is not calculated after each inventory transact...View the full answer
Answered By
Collins Omondi
I have been an academic and content writer for at least 6 years, working on different academic fields including accounting, political science, technology, law, and nursing in addition to those earlier listed under my education background.
I have a Bachelor’s degree in Commerce (Accounting option), and vast knowledge in various academic fields Finance, Economics, Marketing, Management, Social Science, Women and Gender, Business law, and Statistics among others.
4.80+
4+ Reviews
16+ Question Solved
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
Question Posted:
Students also viewed these Cost Accounting questions
-
In a periodic inventory system, what kind of account is Purchases? Is it an asset, an expense, or neither?
-
Why is a physical count of inventory necessary in a periodic inventory system? Why is it still necessary in a perpetual inventory system?
-
In a periodic inventory system, the ending inventory is counted and costed. This number is then used to calculate cost of goods sold. Emad asks, "Why can't you determine the cost of goods sold first...
-
On August 31, 2014, Nina Herrera borrowed $5,000 from Second State Bank. Herrera signed a note payable, promising to pay the bank principal plus interest on August 31, 2015. The interest rate on the...
-
Inferring Income Statement Values Supply the missing dollar amounts for the 2012 income statement of NexTech Company for each of the following independent cases. Case B Case C Case E Case A Case D...
-
Why is conciliation a better way to resolve a commercial dispute than arbitration?
-
Consider a GB2 probability density function given in equation (17.3). a. Reparameterize the distribution by defining the new parameter \(\theta=e^{\mu}\). Show that the density can be expressed as...
-
Ashland Corporation, a merchandising firm, is preparing its cash budget for October. The following information is available concerning its inventories: Inventories at beginning of October...
-
Suppose the 2's complement representation of x is (a 32-bit word is used): 11111111111111111111111111101001 What is the value of x? Give your answer in decimal representation. Explain why your method...
-
When Howard Foth died in the current year, in addition to his $10,745,000 of certificates of deposit and investment property worth $200,000, the following facts were disclosed by the executor: a. In...
-
In the periodic inventory system, what is meant by the term "cost of goods available for sale"?
-
Why do accountants use a Purchases account when inventory items are acquired in a periodic inventory system?
-
If Discuss.
-
Why survey methods is the most appropriate way for research ?
-
CHARISMATIC LEADERSHIP Tucker, R. C. (1968). The theory of charismatic leadership. Daedalus , 731-756. Karl Loewenstein suggests that the theory of charisma and the charismatic leader has risen to be...
-
Charismatic Leadership. Discuss your not in agreement with the the Charismatic leadership role, using academic journals to support your position. What are the pros and cons of that. Using 250 words...
-
How might mirror neurons be related to our feelings of empathy? explain
-
Explain the points in depth: Personality and charismatic leadership: Characteristics of charismatic leadership Personality traits of a charismatic leaders Essential differences between traditional...
-
Write equations that show the process for (a) The first two ionization energies of lead and (b) The fourth ionization energy of zirconium.
-
Refrigerant-134a enters an adiabatic compressor as saturated vapor at 120 kPa at a rate of 0.3 m3/min and exits at 1-MPa pressure. If the isentropic efficiency of the compressor is 80 percent,...
-
Bleistine Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume...
-
Consider the dilemma you might someday face if you are the CFO of a company that is struggling to satisfy investors, creditors, stockholders, and internal company managers. All of these financial...
-
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) Sales revenue (b) Cost of goods sold (c) Gross margin for A75 Company, considering the...
-
Compare and contrast Russia and the United States using Hofstede's four original cultural dimensions: power distance, uncertainty avoidance, individualism versus collectivism, and masculinity versus...
-
Suppose you wanted to know the mean VO2max in milliliters per kilogram per minute of all females at a university. You randomly select 50 names from the files of the administration office and invite...
-
(a) A local printer (within the network) is turned on but is not responding from other computers. (b) What tool will allow you to know if it is connected to the network? PING IFCONFIG IPCNONFIG...
Study smarter with the SolutionInn App