Purchase Solution

Periodic inventory systems

Not what you're looking for?

Ask Custom Question

Subject: What is the difference between perpetual and periodic inventory system?
Details: 1//03 beginning inventory 50 units @ $30
2/22 purchase 70 @$33
3/7 sale(sold) (100)
4/15 purchase 90 @ 35
6/11 purchase 140@ 36
9/28 sale (100)
10/13 Purchase 50@ 38
12/4 sale (100)

Purchase this Solution

Solution Summary

Differences between a perpetual and a periodic system are shown.

Solution Preview

Beginning inventory plus net purchases for the period equals cost of goods available for sale. The main difference between a perpetual and a periodic system is that the periodic system allocates cost of goods available for sale to ending inventory and cost of goods sold only at the end of the period. The perpetual system accomplishes this allocation by decreasing inventory and increasing cost of goods sold each time goods are sold.
In the perpetual system, all purchases ...

Purchase this Solution


Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Introduction to Finance

This quiz test introductory finance topics.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.