20. The biggest difference between a periodic and perpetual inventory system? A. Under the periodic inventory system, the purchase of inventory will be debited to the Purchases account. B. Under the periodic inventory system, no journal entry is recorded at the time of the sale of inventory for the cost of the inventory. C. Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are calculated at the end of the month. D. Under the perpetual inventory systems there is no purchase account to record acquisitions of raw materials. E. All of the answers are correct.
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Under the gross method of accounting for purchases: a. The purchase of inventory is recorded for its full amount. b. The amount paid for inventory during the discount period is the full amount of the purchase minus the discount. c. The amount paid for inventory after the discount period is the full amount of the purchase.
Jennifer S.
The Raw Materials Inventory account is debited for purchase discounts taken. It is also debited for invoice costs and freight costs chargeable to the purchaser. The Raw Materials Inventory account is a subsidiary account. Additionally, it is debited for purchase returns and allowances.
From the following, calculate the cost of ending inventory and cost of goods sold for the LIFO method, ending inventory is 50 units. (Round your answers to the nearest cent.) Beginning inventory and purchases Units Unit cost January 1 4 $ 3.10 April 10 11 3.60 May 15 11 4.10 July 22 16 4.35 August 19 17 5.10 September 30 21 5.30 November 10 31 5.50 December 15 17 5.90 Cost of ending inventory?_________________ Cost of goods sold?___________________
Akash M.
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