In a periodic inventory system, a company must count and determine the cost of its ending inventory.
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In a periodic inventory system, a company must count and determine the cost of its ending inventory. Cost of goods sold is then determined by using the cost of the ending inventory. Emad asks, “Why can’t you determine the cost of goods sold first instead of going through all of these steps?” Explain this to Emad.
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Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9781119594574
8th Canadian Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
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