Below Are 4 Independent Scenarios

question 134

Essay

Below are 4 independent scenarios:
1. A store manager checks the computer system to determine if there is enough inventory to fill a customer order.
2. A year-end inventory count is completed to determine the amount of inventory sold.
3. A month-end inventory count is completed to verify the accuracy of the inventory balances.
4. As inventory is received, all items are scanned and input immediately into the inventory records.
Instructions
For each scenario determine if a perpetual or a periodic inventory system is used.

Identify the purpose and scope of cost accounting within a business context.

Understand the accounting treatment for raw materials purchases and their flow through inventory accounts.

Comprehend the principles of internal control within the context of job order cost accounting.

Know the impact of sales on cost accounts like Cost of Goods Sold and Work in Process Inventory.