{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ch08student

# ch08student - Chapter 8 Class Notes 1 2 Control Two systems...

This preview shows pages 1–17. Sign up to view the full content.

1 Chapter 8 Class Notes

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
2
3 Two systems for maintaining inventory records: Control Perpetual system Periodic system

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
4 | 1. Beginning inventory (100 units at \$7 = 700) | 2. Purchase 900 units at \$7: | | Inventory 6,300 | Purchases 6,300 Accounts payable 6,300 | Accounts payable 6,300 | 3. Sale of 600 untis at \$14: | | Accounts receivable 8,400 | Accounts receivable 8,400 Sales 8,400 | Sales 8,400 Cost of goods sold 4,200 | Inventory 4,200 | | 4. Adjusting entries (ending inventory = 400 units @ \$7 = \$2,800) | No Entry Necessary* | Inventory 2,100 | Cost of goods sold 4,200 | Purchases 6,300 *(Assuming the physical count equals GL balance.)
5

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
6 Fill in the table- use over, under, or none for the type of error
7

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
8
9

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
10
11

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
12
13

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
14
15

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
16 To alleviate the LIFO liquidation problems, goods can be combined into pools of items that are similar (not identical) in nature. The desired result is to “smooth out” the layered price changes of one specific item through the pooling of similar items. This method also has some problems. (1) Most companies are continually changing the mix of their products, materials, and production methods. If a pooled approach using quantities is employed, such changes
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}