Identify all of the following statements that are correct with regards to inventory systems.

a. The key difference between a perpetual inventory system and a periodic inventory system is under a periodic inventory system, inventory counts must be completed.

b. Inventory items that are in transit, with terms FOB shipping point, are included in the balance of inventory in the inventory system of the company buying the goods.

c. The accounting records, under a perpetual inventory system, are continuously updated with changes in the inventory volumes and values.

d. The main reasons a physical inventory may not equal the inventory balance under a perpetual inventory system are shrinkage and/or theft.

e. Inventory items that are in transit, with terms FOB destination, should be included the balance of inventory in the inventory system of the company buying the goods.

f. A physical count of inventory may only be necessary under the perpetual inventory system if the company is concerned about theft.

g. A company that is selling consigned goods in its stores should not include the value of consigned inventory in its physical inventory count.

2 )Flint Jewelry shop buys three different rings: a one carat diamond solitaire at a cost of $1,640, a one carat oval sapphire at a cost of $2,220, and a two carat pear shaped emerald at a cost of $2,980. During the month, the shop sells two of the rings, at the selling price of $2,490 for the diamond ring and $3,970 for the emerald. At December 31, the sapphire ring is still on hand. Calculate the cost of goods sold using specific identification.

Cost of goods sold

$

In its first month of operations, Bramble Inc. made three purchases of merchandise in the following sequence: (1) 360 units at $10 each, (2) 680 units at $12 each, and (3) 830 units at $11 each. A physical inventory count determined that there were 590 units on hand at the end of the month. Assuming Bramble uses a periodic inventory system.

Correct answer iconYour answer is correct.

Calculate the cost of the ending inventory and cost of goods sold using by FIFO.

Ending inventory		$enter a dollar amount
Cost of goods sold		$enter a dollar amount

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Partially correct answer iconYour answer is partially correct.

Calculate the cost of the ending inventory and cost of goods sold using average. (Round final answers to 2 decimal places, e.g. 1.52 .)

Weighted average cost		$enter a dollar amount
Ending inventory		$enter a dollar amount
Cost of goods sold		$enter a dollar amount