Why is it important to count the inventory even if the company uses a perpetual system?

Expert Solution

ekkarill92 answered 2 years ago

Inventory Costing Methods-Perpetual Method Kali Company uses the perpetual inventory system for its merchandise inventory. The...

Inventory Costing Methods-Perpetual Method Kali Company uses the perpetual inventory system for its merchandise inventory. The June 1 inventory for one of the items in the merchandise inventory consisted of 60 units with a unit cost of $45. Transactions for this item during June were as follows: June 5 Purchased 40 units @ $50 per unit 13 Sold 50 units @ $95 per unit 25 Purchased 40 units @ $53 per unit 29 Sold 20 units@ $110 per unit Required...

Instructions Hahn Flooring Company uses a perpetual inventory, system.

Hahn Flooring Company uses a perpetual inventory, system. A. The inventory account has a balance of $1,333,150, while physical inventory indicates that $1,309,900 of merchandise is on hand. Assume any shrinkage is a normal amount. B. Sales returns of $125,000 and merchandise returns of $80,000 are estimated for the current year's sales. Journalize the December 31 adjusting entries based on the above transactions. Refer to the Chart of Accounts for exact wording of account titles.

Inventory Costing Methods—Perpetual Method Arrow Company is a retailer that uses the perpetual inventory system. August...

Inventory Costing Methods—Perpetual Method Arrow Company is a retailer that uses the perpetual inventory system. August 1 Beginning inventory 80 units of Product A @ $1,600 total cost 5 Purchased 100 units of Product A @ $2,116 total cost 8 Purchased 200 units of Product A @ $4,416 total cost 11 Sold 170 units of Product A @ $4,800 total sale Calculate the inventory cost of item A on August 11 (after the sale) using (a) first-in, first-out, (b) last-in,...

A company uses a perpetual inventory system. The company's beginning inventory of shoes and the purchases...

A company uses a perpetual inventory system. The company's beginning inventory of shoes and the purchases during a month as as follows: Beginning Inventory Jan 1: 16 pairs at $10 ea Purchase Jan 11: 14 pairs @ $12 ea Purchase Jan 20: 23 pairs at $15 ea On Jan 14 the company sold 25 units of shoes. The other 28 units remained in inventory at Jan 31. Question 1: Assuming the company uses the average cost flow assumption what is...

a company uses the perpetual inventory system purchased inventory for $970,000 on account with terms of...

a company uses the perpetual inventory system purchased inventory for $970,000 on account with terms of 3/7, n/20 which of the following records the payment made 15 days after the date of invoice

Why is it important to periodically take a physical inventory when using a perpetual inventory system?...

Why is it important to periodically take a physical inventory when using a perpetual inventory system? Name a local company that you believe uses periodic inventory systems and a local company that you believe uses perpetual inventory systems. Explain your basis. need help with the questions to form a discussion for my accounting class

Why is it important to take a physical inventory periodically when using a perpetual inventory system?...

Why is it important to take a physical inventory periodically when using a perpetual inventory system? explain in 150 words

The inventory data of Bilal Inc. is provided below, The company uses perpetual inventory system. Inventory:...

The inventory data of Bilal Inc. is provided below, The company uses perpetual inventory system. Inventory: 1st March = 200 units @ $4.00 (purchased) Purchases: 12th March = 500 units @ $4.50 (purchased) 15th March = 400 units @ $4.75 (purchased) 17th March = 828 units @ $5.00 (purchased) Sales: 20th March = 1928 units sold Instructions Under a perpetual inventory system, determine the cost of goods sold and ending inventory for the month of March under FIFO method

Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for...

Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $12.00 5/5 Purchase 200 $10.50 5/10 Sales 300 $25 5/15 Purchase 200 $13.00 5/20 Sales 250 $28 5/25 Purchase 150 $13.50 Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.

A company that uses the PERPETUAL inventory system has the following records for 2017 Beginging inventory...

A company that uses the PERPETUAL inventory system has the following records for 2017 Beginging inventory Units Unit cost Purcahses: 120 $48 Febuary 8th 60 52 June 15th 70 54 22-Aug 55 57 Novemeber 29 45 61 Salkes: 30-Mar 145 20-Jul 90 December 15th 60 Please compute the cost of ending inventory and the cost of goods sold using the follow methods: Please also show all steps/work A) FIFO B) Weighted Average c) LIFO

Question