What is required at the end of a reporting period in a periodic inventory system quizlet?

Smith Company adopted dollar-value LIFO (DVL) as of January 1, 2016, when it had an inventory of $690,000. Its inventory as of December 31, 2016, was $758,100 at year-end costs and the cost index was 1.05. What was DVL inventory on December 31, 2016?

Inhaltsverzeichnis Show

What is required at the end of a reporting period in a periodic inventory system?
What does the periodic inventory system require?
Which task is completed at the end of the periodic inventory process?
What is the closing process under the periodic inventory system?

$758,100
Reason:
$758,100/1.05 = $722,000 giving 2 layers of $690,000 and $32,000. $690,000 x 1.0 = $690,000 $32,000 x 1.05 = $33,600 $690,000 + $33,600 = $723,600
$724,500
Reason:
$758,100/1.05 = $722,000 giving 2 layers of $690,000 and $32,000. $690,000 x 1.0 = $690,000 $32,000 x 1.05 = $33,600 $690,000 + $33,600 = $723,600
$722,000
Reason:
$758,100/1.05 = $722,000 giving 2 layers of $690,000 and $32,000. $690,000 x 1.0 = $690,000 $32,000 x 1.05 = $33,600 $690,000 + $33,600 = $723,600
$723,600

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What is required at the end of a reporting period in a periodic inventory system?

What is required at the end of a reporting period in a periodic inventory system? A physical count of the period's ending inventory so an adjustment can be made.

What does the periodic inventory system require?

Periodic Inventory Explained With a periodic inventory system, a company physically counts inventory at the end of each period to determine what's on hand and the cost of goods sold. Many companies choose monthly, quarterly, or annual periods depending on their product and accounting needs.

Which task is completed at the end of the periodic inventory process?

The ending inventory is determined at the end of the period by a physical count of every item and its cost is computed using inventory calculation methods such as FIFI, LIFO and weighted averages.

What is the closing process under the periodic inventory system?

Closing Entries (Periodic) In order for the Merchandise Inventory account to reflect the ending balance as determined by the physical inventory count, the beginning inventory balance must be removed by crediting Merchandise Inventory, and the ending inventory balance entered by debiting it.