Example of Periodic and Perpetual System

Example of Periodic and Perpetual System - Weighted...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Introduction To Financial Accounting HKUST Example of Periodic and Perpetual Year 0 Periodic System Perpetual System Begin with 0 units LIFO: COGS = 13 + 14 = 27 LIFO: COGS = 8 + 13 = 21 Jan 1, Buy 1 unit @ $5 Feb 1, Buy 1 unit @ $8 Weighted Average: COGS = 10 * 2 = 20
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Weighted Average: COGS = (5+8+13)/3 * 2 = 17 April 1, Buy 1 unit @ $13 May 1, Sell 2 units FIFO: COGS = 5 + 8 = 13 FIFO: COGS = 5 + 8 = 13 June 1 Buy 1 unit @ $14 Slide 45 Chapter Seven COGS 5 + 8 13 COGS 5 + 8 13 June 1, Buy 1 unit @ $14...
View Full Document

This note was uploaded on 02/13/2012 for the course ACCT 101 taught by Professor Na during the Fall '10 term at HKUST.

Ask a homework question - tutors are online