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How can you calculate average cost during each transaction such as purchase purchase return sales and sales return in moving-average-cost-method in inventory?
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∙ 10y ago
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Wiki User
∙ 10y ago
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What will be accounting entry when a purchase order is created?
There is no journal entry required when purchase order is created because no accounting transaction occurred until received any inventory or product.
Will a credit always decrease a cash account?
A cash account will always be decreased by a credit, but a credit will not always decrease a cash account. The only time a credit decreases cash is when the company pays out cash, whether it's to purchase supplies, inventory, or pay wages etc. Here is two examples of a credit in a transaction, one will decrease cash, the other will not. Company X buys $1,000 in inventory from Company Y and pays CASH. The debit for this transaction will increase inventory, the credit will decrease cash since company X is paying cash for this transaction. Using the same transaction however, changing Company X wants to purchase this inventory on "credit" the debit in this transaction as above will still increase inventory, however, since Company X has chosen to purchase this inventory on credit and not use cash and accounts payable will be set up and the credit will "increase" accounts payable. Remember, Assets will "always" increase with a debit and decrease with a credit. Liabilities will "always" decrease with a debit and increase with a credit.
How can you calculate the raw materials beginning inventory balance and raw materials available for use for COGM when you only have the purchase amounts for inventory and the closing balance?
yea mon
What are some examples of planned inventory investment?
An example of a planned inventory investment might be the purchase of inventory at a reduced price to gain a larger profit margin. Another example of a planned inventory investment might be the purchase of shelving or another cash register.
When you use mobile phone to purchase the product and transfer the money then the transaction name?
when you use mobile phone to purchase the produ t and transfer the money,the transaction is called
When preparing a merchandise purchase budget the required purchase in units equals?
budgeted unit sales - beginning merchandise inventory + desired merchandise ending inventory.
Journal entry to record physical inventory?
To record the purchase of physical inventory: Dr. inventory Cr. cash To record sale of physical inventory: Dr. cost of goods sold Cr. inventory
What is the transaction number to get a Mustang Unicorn on Howrse?
You have to purchase the board game for the transaction number. It will be on your receipt of purchase.give up
What is difference between periodic inventory and perpetual inventory?
Periodic inventory method calculate ending stock at the end of the accounting period, which could be Month to Date or Year to Date, while Perpetual inventory system calculates the ending stock on a continuous basis after each transaction (Purchase or Sell). Within Retail industry, periodic inventory method used for inventory valuation at the stores, whereas distributer like SuperValu (in US) follows perpetual inventory method to track inventory in their distribution centers. As a best practice, some of the retail companies are using perpetual accounting method to track inventory available in warehourses and distribution centers. In an idealistic world, perpetual inventory method can provide the true and real time inventory information, however due to complexities in consolidating all the purchases, sales, shrinkages and other market factors, it is advisable for retail companies to follow periodic accounting method to analyze and review the results before presenting the inventory valuation results to internal and external agencies like Shareholders, Income Tax Authorities, et el.
A single purchase limit is?
The maximum amount of money that can be charged to the purchase card for a single transaction.
What is rental inventory financing?
For manufacturers, dealers and traders who are in need of inventory any time, FMLFC can provide financing for the purchase of inventory on a regular basis.
What does the term inventory indicate?
The term inventory indicates that a business houses products and services. Inventory can be inefficient because the company is using money to purchase inventory instead of investing it in the company.
