Which of the following statements is correct? a. Accounting for materials under FIFO is different when the entity is using the periodic inventory system and perpetual inventory system. b. Average method applied to periodic inventory system necessitates the computation of revised unit cost after every purchase. c. Average perpetual uses a single average unit cost of materials d. Total cost of materials available for use is the same whether the company is using FIFO or Average Method.
Which of the following statements is correct? a. Accounting for materials under FIFO is different when the entity is using the periodic inventory system and perpetual inventory system. b. Average method applied to periodic inventory system necessitates the computation of revised unit cost after every purchase. c. Average perpetual uses a single average unit cost of materials d. Total cost of materials available for use is the same whether the company is using FIFO or Average Method.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 17GI
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34.Which of the following statements is correct?
a. Accounting for materials under FIFO is different when the entity is using the periodic inventory system and perpetual inventory system.
b. Average method applied to periodic inventory system necessitates the computation of revised unit cost after every purchase.
c. Average perpetual uses a single average unit cost of materials
d. Total cost of materials available for use is the same whether the company is using FIFO or Average Method.
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