A client is using and tracking inventory on hand. They purchased 10 widgets at $10 each...

A client is using and tracking inventory on hand. They purchased 10 widgets at $10 each and 10 widgets at $15 each. All of the widgets are sold in one transaction.

Considering QuickBooks Online uses the FIFO method for tracking inventory, what is the best way to see line items affected in the sales transaction?

Run a Balance Sheet, and select Inventory on hand to see the transaction history
Open the customer invoice, and select the transaction journal
Run an Inventory Valuation Summary
Run a Profit & Loss, and select Cost of Sales account to see the transaction history

Solutions

Expert Solution

(Q) A client is using and tracking inventory on hand. They purchased 10 widgets at $10 each and 10 widgets at $15 each. All of the widgets are sold in one transaction.Considering QuickBooks Online uses the FIFO method for tracking inventory, what is the best way to see line items affected in the sales transaction?

(Ans) The correct answer is option 'A' - Run a Balance Sheet, and select Inventory on hand to see the transaction history

First In, First Out (FIFO) is a concept used by businesses that track Inventory. QuickBooks Online will always consider the first units purchased (First In) to be the first units sold (First Out) and will adjust your assets and Cost of Sales (COS) accordingly whenever sales of inventory items are entered. Inventory tracking has specific impacts on your Balance Sheet and Profit & Loss reports. The Balance Sheet shows the Inventory Asset accounts that are associated with your inventory-enabled Product/Service items.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

PQR Corporation had an inventory of widgets on hand on January 1, 2016 which cost $10...

PQR Corporation had an inventory of widgets on hand on January 1, 2016 which cost $10 per widget. During 2016 PQR increased its widget inventory through two purchases. On February 1, PQR purchased another 1000 widgets at a cost of $13 per widget; and on September 1, 2016 it purchased another 1000 widgets at 15 per widget. There was only one sale of widgets during 2016. It occurred on December 11, 2016 when 1500 widgets were sold. What was the...

Aug.1 Inventory on hand—2,800 units; cost $6.10 each. 8 Purchased 14,000 units for $6.30 each. 14...

Aug.1 Inventory on hand—2,800 units; cost $6.10 each. 8 Purchased 14,000 units for $6.30 each. 14 Sold 11,200 units for $12.80 each. 18 Purchased 8,400 units for $6.40 each. 25 Sold 10,200 units for $11.80 each. 28 Purchased 4,800 units for $5.80 each. 31 Inventory on hand—8,600 units. Required: Using calculations based on a periodic inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report...

Aug.1 Inventory on hand—3,900 units; cost $8.00 each. 8 Purchased 19,500 units for $7.40 each. 14...

Aug.1 Inventory on hand—3,900 units; cost $8.00 each. 8 Purchased 19,500 units for $7.40 each. 14 Sold 15,600 units for $13.90 each. 18 Purchased 11,700 units for $6.60 each. 25 Sold 14,600 units for $12.90 each. 28 Purchased 5,900 units for $5.80 each. 31 Inventory on hand—10,800 units. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in...

Aug.1 Inventory on hand—2,800 units; cost $6.10 each. 8 Purchased 14,000 units for $6.30 each. 14...

Franklin Co. had 10 units of an inventory item on hand at the beginning of the...

Franklin Co. had 10 units of an inventory item on hand at the beginning of the current year, each of which had a per-unit cost of $10. During the year, 20 additional units were purchased at $11, and 25 units were sold. What is the amount of the ending inventory under the LIFO and the average-cost methods of accounting for inventory? (Round your intermediate calculations and final answers to 2 decimal places.)

Depreciation Problem: (8pts) ---- Please complete using Excel or by hand. A machine was purchased for...

Depreciation Problem: (8pts) ---- Please complete using Excel or by hand. A machine was purchased for $92,000 and had a depreciable life of five years and a depreciable salvage value of $5,000. Using the following depreciation methods; Straight Line, Sum-OfYears’ Digits, Double Declining Balance, and MACRS(with a 5 year property class): a. Create a depreciation schedule The owner has been offered to sell the machine in year 2 for $50,000. b. Calculate if the company will see a gain or...

In order to meet the specifications of a client, a manufacturer of widgets needs to make...

In order to meet the specifications of a client, a manufacturer of widgets needs to make their widgets 1200 mm long. A quality assurance expert randomly selects 159 widgets and calculates the mean length to be 1202 mm. If it is known that the population standard deviation is1.24 mm.... construct the 95% confidence interval about the population mean. does it seem as though the client's specifications have been met? if we constructed a 99% confidence interval, would the range between...

A company using the perpetual inventory system purchased inventory worth $ 540 000 on account with...

A company using the perpetual inventory system purchased inventory worth $ 540 000 on account with credit terms of 2/15, n/45. Defective inventory of $ 50 000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be ________. a. 540,000 debit to accounts payable and $540,000 credit to cash b. 540,000debit to accounts payable , $540,200 credit to cash and $9,800...

There are 10 units in ending inventory compute the value of the ending inventory using the...

There are 10 units in ending inventory compute the value of the ending inventory using the periodic inventory method. Compute the answer using FIFO, LIFO and the average cost methods. (round your answer to the nearest whole number) Price Cost Number Per Per Date Transaction of units unit Purchase Apr. 3 Inventory 2 10 20 8 Purchase 2 15 30 11 Purchase 3 20 60 30 Purchase 2 25 50 May 8 Purchase 3 25 75 10 Purchase 3 30...

Causwell Company began 2018 with 22,000 units of inventory on hand. The cost of each unit...

Causwell Company began 2018 with 22,000 units of inventory on hand. The cost of each unit was $6.00. During 2018 an additional 42,000 units were purchased at a single unit cost, and 32,000 units remained on hand at the end of 2018 (32,000 units therefore were sold during 2018). Causwell uses a periodic inventory system. Cost of goods sold for 2018, applying the average cost method, is $225,600. The company is interested in determining what cost of goods sold would...

Subjects