Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribedimage text in transcribed

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Valuation Emphasis

Authors: John S. Hughes, Frances L. Ayres, Robert E. Hoskin

1st Edition

0471203599, 978-0471203599

More Books

Students also viewed these Accounting questions

Question

Differentiate microeconomics and macroeconomics. (10 marks)

Answered: 1 week ago

Question

Define self-esteem and discuss its impact on your life.

Answered: 1 week ago