0
Axme Corporation uses a weighted average perpetual inventory system August 2 11 units were purchased at 2 per unit August 18 16 units were purchased at 4 per unit August 29 13 units were sold?
Wiki User
∙ 9y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What is Weighted Average of Inventory Valuation Method?
Weighted average inventory valuation method is method in which inventory purchased at any price is put together to calculate one price for allocation in contrast to FIFO or LIFO.
What is the difference of evaluation of inventory between weighted average method and FIFO method?
A method of inventory accounting in which the oldest remaining items are assumed to have been the first sold. In a period of rising prices, this method yields a higher ending inventory, a lower cost of goods sold, a higher gross profit (assuming constant price), and a higher taxable income. Also called FIFO.Method in calculation in which the weighted averagezzor the period is the cost of the goods available for sale divided by the number of units available for sale. When the perpetual inventory system is used, the weighted average method is called the moving average method.
Why you dont pass any entry for weighted or moving average method in perptual periodic inventory system as you pass entries in fifo lifo in perpetual periodic?
This could be a poorly written question in that the grammar seems errant and the term wording of the given systems appears faulty. It is possible that the author of the question typoed and placed "perpetual" in front of "periodic" and didn't intend to do so. The question could be answered simply with, they are two separate systems, and any "pass" would function differently in separate systems. Or, the first system is a set system over a given time and the other is a "flow" system also over a given time. Further demonstration might be needed. Firstly, separate the "weighted" and "moving" terminology: the first is addition and the next is either subtraction OR addition but not as stationary as weighted; that is "weighted" is to be thought of as in-coming exclusively. Periodic Inventory System (PIS) differs from Perpetual Inventory System (PeIS), where PIS is an individual listing of given inventory (separate queues) without impact to other queues and PeIS is all the given queues as a whole at once.
In an inflationary environment which inventory cost flow assumption would produce the lowest inventory balance?
weighted average
The inventory valuation method that tends to smooth out erratic changes in costs is?
Weighted average method which requires to use the weighted average cost per unit of inventory at the time of each sale.
Which inventory pricing method is being used when a company recalculates inventory prices every time a new item is added to the inventory?
Weighted Average
Is weighted average inventory valuation GAAP?
Yes, along with FIFO and LIFO, Weighted average is a generally accepted accounting principle.
Inventory valuation method that tends to smooth out erratic changes in cost?
Weighted Average
What is weighted average method of inventory management?
The total value of material divided by the total quantiy of stock
Where can I find advice on weighted vests?
Weighted vests information can be found at your local apparel shop or several online resources. Friends may be of help if they have purchased and used a weighted vests. Information on weighted vests through online resources can be found here, www.weightvest.com/.
What is the valuation method used for valuating inventory as per Indian accounting standards?
Majority of the companies are following weighted average method to value inventories. In India, the Income Tax authorities only allow FIFO & Weighted Average Method.
Is fifo the inventory costing method that follows the physical flow of the goods?
no, FIFO, LIFO, and weighted-average method are cost flow assumptions these assumptions bear no relation to the physical flow of goods; they are merely used to assign costs to inventory units.
