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: 71% (14 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...
-
For Exercises perform each of the following steps. a. State the hypotheses and identify the claim. b. Find the critical value(s). c. Compute the test value. d. Make the decision. e. Summarize the...
-
List and describe the legal elements that comprise the unintentional tort of negligence. Provide an example of a negligence situation involving a personal injury. Provide another example of a...
-
Bloom Orchards produced a good crop of peaches this year. After preparing the following income statement, the company believes it should have given its No. 3 peaches to charity and saved its efforts....
-
1. Where cursor implementation can be used? 2. List down the applications of List. 3. What are the advantages of linked list? 4. Mention the demerits of linked list? 5. What are the operations...
-
The worm shaft shown in part a of the figure transmits 1.2 hp at 500 rev/min. A static force analysis gave the results shown in part b of the figure. Bearing A is to be an angular-contact ball...
-
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?
-
Contrast the research findings of Carol Gilligan and Lawrence Kohlberg on male and female moral development.
-
Which method is the one that uses a visual list of the pros and cons of buying now or waiting, buying the salesperson's product versus a competitor's, and buying versus not buying?
-
Suppose you plan to put away some years to build up a nest egg to use as a down payment on a house. You start off by putting away $2,000 today, and over the next three years you are able to put away...
-
When calculating net cash flow, net income is considered a. income available for distribution to common shareholders. b. income unavailable for distribution to common shareholders. c. income...
-
A client with acquired immunodeficiency syndrome (AIDS) is admitted to the hospital for chills, fever, nonproductive cough, and pleuritic chest pain. A diagnosis of Pneumocystis jiroveci pneumonia is...
-
Consider RANDOMIZED-QUICKSORT operating on a sequence of n distinct input numbers. Prove that for any constant k > 0, all but O(1/n k ) of the n! input permutations yield an O(n lg n) running time.
-
How does health insurance risk differ from other types of insurance risk (e.g., automobile or homeowners insurance)? What is the difference between cost sharing and cost shifting? Is retiree health...
-
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...
-
A business provides services valued at 1 1 0 0 and sends an invoice to the client. The client has promised to pay in one month. which two accounts will be affected?
-
Rushing's financial statements were finalized on March 3, 2025. Required: 1. What amount(s) if any, related to the situations described should Rushing report among current liabilities in its balance...
-
Monroe Company produces and sells three products. Information regarding these three products for 2024, the most recent year, is provided below: selling price per unit Product #1 $26 variable costs...
Study smarter with the SolutionInn App