Tom Finger Provides You with the Following Information in Regard

question 6

Essay

Tom Finger provides you with the following information in regard to his inventory for the 20X1 year (note that purchases are always made on the first day of the month before any sales):
a What would Tom's Cost of goods sold expense and Ending inventory value be if he used the perpetual inventory method,valuing his inventory at weighted average cost? (Complete the WAC inventory form given below - the first 3 columns have been completed for you. )
b Prepare an abbreviated Income Statement for 20X1 using the above weighted average cost figures,and assuming other expenses are $70,000.
c What would be 3 advantages in Tom's situation of using the:
i perpetual inventory weighted average cost for his business?
ii existing (periodic)system?
WAC inventory form

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Definitions:

Subordinates

Individuals within an organization who are at a lower position or rank than others and typically report to a superior.

Dismiss

To officially order or decide that something or someone should be removed from consideration or a position.

Delegation

The process of assigning responsibility and authority to others to carry out specific activities while retaining ultimate accountability.

Development

The process of growth, progress, or evolution of an individual, organization, or system.