ACC 290 Week 4 DQ1
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This 0 page Study Guide was uploaded by an elite notetaker on Monday November 9, 2015. The Study Guide belongs to fin571 at Kaplan University taught by in Fall 2015. Since its upload, it has received 21 views.
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Date Created: 11/09/15
Week 4 D01 How would you calculate cost of goods sold What items make up cost of goods sold How does beginning and ending inventory affect cost of goods sold One can determine the cost of goods sold when using a periodic inventory system does not calculate the cost of goods sold until the end of the period At the end of the period a count is done to determine the ending balance of the inventory After this is completed the cost of goods sold is calculated by subtracting ending inventory from the goods still available for sale The goods available for sale is the sum of the beginning inventory plus purchases The periodic system creates different accounts for purchases freight returns and discounts p 244 The perpetual system makes an entry to record cost of goods sold and reduces inventory every time a sale is made The perpetual system also adjust the inventory for any transactions that affect inventory such as freight costs returns and discounts p 244 The beginning and ending inventory affect cost of goods sold because the beginning inventory which is from the previous month is calculated by subtracting the current cost of goods purchased from the cost of goods available and giving the ending inventory Which is the beginning inventory for the coming month References Kimmel P D Weygandt J J amp Kieso D E 2011 Financial accounting Tools for business decision making 6th ed Hoboken NJ John Wiley amp Sons
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