Why is specific identification used only in a perpetual inventory system and not in a periodic inventory

Question:

Why is specific identification used only in a perpetual inventory system and not in a periodic inventory system?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118024492

5th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

See More Books

Question Posted: Jul 18, 2017 01:48 AM

See More Questions

FIFO, weighted-average, and LIFO methods are often used instead of specific identification for inventory valuation purposes. Compare these methods with the specific identification method, discussing...
Inventory computations require cost-flow assumptions only because specific identification of items sold is costly. Specific identification is theoretically superior to any cost-flow assumption and...
Multiple Choice Questions 1. The inventory valuation method that has the advantages that it assigns a value to the inventory on the balance sheet that approximates current cost, and also mimics the...
Name the following compounds, and indicate whether each is a reducing sugar or a nonreducing sugar: a. b. c. d. CH,OH HO OCH2CH2CH3 OH HO CH2OH OCH3 - HOCH OCH2CH3 CH OH OH OH
Verify ND for unit operations (e) and (f) in Table 5.4. How would ND change if a vapor side stream was pulled off some stage located between the feed stage and the bottomstage? 2N + 2C +6 1. Recovery...
Why is it recommended that every ternary relationship be converted into an associative entity?
A stainless-steel component is exposed to laser heating at an initial temperature of $300 \mathrm{~K}$. After a short transient the surface reaches its melting point, and the surface recedes at a...
A successful California engineer has installed a circular hot tub in his back yard and finds that for the typical operating conditions prescribed below, water must be added at a rate of 0.00 I kg/s...
Windsor Corporation wants to raise $1,210,000 via a rights offering. The company currently has 220,000 shares of common stock outstanding that sells for $32 per share. The issue will allow current...
Carlsbad Corporations sales are expected to increase from $5 million in 2018 to $6 million in 2019, or by 20%. Its assets totaled $3 million at the end of 2018.Carlsbad is at full capacity, so its...
Identify the differences, if any, in the valuation and reporting of inventory between publicly traded companies reporting under IFRS and private companies reporting under ASPE.
The cost of Piper Music Inc.'s inventory at December 31, 2011, is $54,700. Its net realizable value on the same date is $52,500. (a) Prepare the adjusting journal entry required, if any, to record...
A point is selected at random from the rectangle of Fig. 2; call its coordinates (, y). Find the probability that y sin . 1 0 Figure 2 77 9
What strategy would you recommend for a small-sized company entering a highly segmented market, each segment with a complex set of needs and spending power? Imagine that you are the manager of a...
How do companies develop their strategies? Describe the process. Also, give example(s) of a strategy(ies) for Walmart.
How do you lead and advise 2 case workers on a complex case including: 1. Providing direction , support and recommendations and advise 2. Promoting best practice 3. Monitoring case progress Worker 1...
Developing new and innovative products requires an understanding of organizational production systems, you have therefore been requested by a team of operations managers of a leading consumer goods...
Describe your system for performance appraisal and training. How will you reward good employees? When you have weak employees how will you change their behavior?
The following transactions are February activities of Swing Hard Incorporated, which offers indoor golfing lessons in Western Canada. If revenue is to be recognized in February, indicate the amount....
Refrigerant R-12 at 30C, 0.75 MPa enters a steady flow device and exits at 30C, 100 kPa. Assume the process is isothermal and reversible. Find the change in availability of the refrigerant.
The transactions that follow are expenditures related to property, plant, and equipment: 1. Operator controls on equipment were replaced for $7,000, because the original control devices were not...
The intangible assets and goodwill reported by Ghani Corporation at December 31, 2014, follow: Copyrights....................................... $36,000 Less: Accumulated amortization..................
For the year ended December 31, 2015, Westlake Ltd. had the following transactions related to the purchase of property. Assume all transactions are for cash unless otherwise stated. Feb. 7 Purchased...
Prove that Russian multiplication does what it needs to do, i.e. the result is the product of the two integers. Do not use the proof of the book. It is mainly an exercise in understanding the binary...
What is the fundament difference between growing a unicorn versus a camel? What are the financial recommendations for start-ups and the reasons given for those choices? Do you agree with these...
16. Nickel Inc. bought $500,000 of 3-year, 9% bonds as an investment on December 31, 2015 for $545,000. Nickel uses straight-line amortization. On May 1, 2016, $100,000 of the bonds were redeemed at...

Why is specific identification used only in a perpetual inventory system and not in a periodic inventory

Question:

Step by Step Answer:

The specific identification is only suitable ...View the full answer

Financial Accounting Tools for Business Decision Making

Students also viewed these Cost Accounting questions