Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please complete B8.05 using periodic accounting policy, LIFO and FIFO. I want to see: 1. Account analysis for Inventory, (units, $ per unit and total
Please complete B8.05 using periodic accounting policy, LIFO and FIFO. I want to see: 1. Account analysis for Inventory, (units, $ per unit and total cost) 2. Analysis of ending Inventory and Cost of goods sold 3. Journal entries for purchases and sales (the periodic adjustment) 4. General ledger account for inventory Basic "perpetual" calculations for inventory, FIFO, LIFO, average cost B-08.05 Tom Pryor is conducting an audit of the computerized inventory system used by Zix Corporation. Tom has inserted hypothetical data into the computer program that tracks inventory on a perpetual basis. Below are the hypotheical data inserted by Tom: Units 10 Cost per unit $10 5 $11 Transaction Beginning inventory Purchase, day 1 Sale, day 2 Purchase, day 3 Sale, day 4 6 8 $12 9 The computer program returned the following ending inventory values: FIFO Perpetual, $96 LIFO Perpetual, $80 Moving average, $88 Which of the three values appears to be incorrect, and what "error" might be causing this condition
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started