Should the management prefer the periodic inventory system

Assignment Help Managerial Accounting
Reference no: EM133078966

Question - Mr. Asif started business from 1 st September 2015. His investment in the business was Tk.20,000. The following transactions were completed during September: September-3; Merchandise purchased on account from Saad Tk.1,200, terms 2/15, N/30. September-5; Paid freight Tk.80 on purchase of September 3. September-8; Credit received from Saad Tk.100 for merchandise returned. September-9; Merchandise sold on account Tk.800. Terms 1/10, N/30. The cost of the sold merchandise was Tk.650. September-15; Merchandise purchased Tk.3,500, terms 2/10, N/30. September-16; Amount paid to Saad, less discount. September-19; Credit received from supplier Tk.200 for merchandise returned which was purchased on September 15. September-21; Merchandise sold in account Tk.1400. Terms N/30. The cost of the sold merchandise was Tk.1180. September-22; Amount paid for purchase on account of September 15. September-25; Amount received from buyer of September 9, Tk.800.

Required -

a) Journalizes the transactions of September using Perpetual Inventory System.

b) If the managers of company XYZ needs to have up to date records of Inventory for better production management, should the management prefer the periodic inventory system or the perpetual inventory system?

Reference no: EM133078966

Questions Cloud

Calculate the cash increase or decrease from financing : Net cash decrease from investments was $19,000. Based on this information, calculate the cash increase (or decrease) from financing
What is the social marginal benefit curve : Suppose Scott and Bob live on the same street. In the winter, both of them like their street plowed. Bob's demand is given by Q = 40 - P, and Scott's demand is
What do you think policymakers expected would happen : What do you think policymakers expected would happen when they deregulated the trucking industry?
How is the rate of infletion measured : How is the rate of infletion measured? What is the difference between anticipated and unanticipated inflation?
Should the management prefer the periodic inventory system : Should the management prefer the periodic inventory system or the perpetual inventory system
Prepare the general journal entries to record the purchase : Prepare the general journal entries to record the purchase of the van and the above transactions - July 8 Paid $3 300 (GST inclusive) for signwriting
Withhold money for federal government : What are several reasons why employers withhold money for Federal Government?
Find a financial article in the financial section : Question 1: Find a financial article in the financial section of a newspaper related to economic analyses and summarize the article. Then please answer: which c
Find out the total salary for one year : 1. An employee was promised by his boss that he will have a salary of P295,000 on his ?rst month and will be increased by 30.7% on the succeeding months.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Compute the equivalent units for direct material

Compute the equivalent units for direct material and conversion costs for the month of May.

  What would be the labor time variance

If each temporary employee earns a standard $17 per hour, what would be the labor time variance if the actual number of additional letters sorted

  Calculate each raw material seperately

Creating the direct material budget. Calculate each raw material seperately or sum them "all in one" in the DIRECT MATERIAL BUDGET ?

  Determine the variable cost per unit

Using the high-low method, determine the variable cost per unit and the total fixed cost. Round all answers to the nearest whole dollar

  What is zahrin debt over market equity ratio

What is Zahrin debt over market equity ratio? Zahrin company balance sheet shows its debt is at RM200 million with equity of RM30 million.

  How to compute the residual income for each division

Evaluates performance by use of residual income and that the minimum required return for any division is 16%. Compute the residual income for each division.

  Gazelle corporation, a merchandiser, recently completed

1.Gazelle Corporation, a merchandiser, recently completed its calendar- year 2013 operations. For the year,

  Which items appears only in a manufacturing company

Which items appears only in a manufacturing company's financial statements? What The goal of managerial accounting is to provide the information

  What will leather purchases be in August

On July 1 leather inventory was expected to be 1,600 square meters. What will leather purchases be in August

  What are the operational issues

What are the operational issues and the differences in HRM policies and procedures for a manufacturing firm with a variable output versus a service

  Determine the standard cost per seal

Prepare a summary of the variances, and indicate which variances should be investigated.

  Prepare decision tree that clearly provides an objective

Prepare decision tree that clearly provides an objective analysis of the options. The decision tree should clearly denote expected values, probabilities

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd