Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tom pryor is conducting an audit of the computeriz

Tom Pryor is conducting an audit of the computerized inventory system used by Zix Corporation....

80.2K

Verified Solution

Question

Accounting

Tom Pryor is conducting an audit of the computerized inventory system used by Zix Corporation. Tom has inserted hypothetical data into the computer program that tracks inventory on a perpetual basis. Below are the hypotheical data inserted by Tom: Transaction Units Cost per unit Beginning inventory 10 $10 Purchase, day 1 5 $11 Sale, day 2 6 Purchase, day 3 8 $12 Sale, day 4 9 The computer program returned the following ending inventory values: FIFO perpetual, $96 LIFO perpetual, $80 Moving average, $88 Which of the three values appears to be incorrect, and what "error" might be causing this condition?

FIFO perpetual: Date Purchases Cost of Goods Sold Balance Day 0 10 X $10 = $100 Day 1 5 X $11 = $55 Day 2 Day 3 8 X $12 = $96 Day 4 Ending LIFO perpetual: Date Purchases Cost of Goods Sold Balance Day 0 10 X $10 = $100 Day 1 5 X $11 = $55 Day 2 Day 3 8 X $12 = $96 Day 4 Ending Moving average: Date Purchases Cost of Goods Sold Balance Day 0 10 X $10 = $100 Day 1 5 X $11 = $55 Day 2 Day 3 8 X $12 = $96 Day 4 Ending

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Describe the key concepts of allocation and apportionment in thetaxation of the net income...

Finance
1.2K views

Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...

Biology
1.2K views

Substrate modification necessary for proteasomal degradation:

Biology
1.2K views

is added to start of the unmodified RNA to act as protection preventing information loss...

Physics
1.2K views

A vehicle of mass m is moving on a rough horizontal road with momentum P...

Algebra
1.2K views

An island is 4 miles from the nearest point P on a straight shoreline A...

Accounting
1.2K views

Quatro Co. issues bonds dated January 1, 2017, with a par value of $820,000. The...

Accounting
1.2K views

The number of new products developed might be a measure on this section of the...

Accounting
1.2K views

1. Lease or sell Claxon Company owns a machine with a cost of $305,000 and...

Accounting
1.2K views

Unrealized holding gains and losses occur because a company A) actively trades securities. B) holds...

Finance
1.2K views

Consider GooG, a conglomerate with many divisions. If GooG uses the overall firm weighted average...

Accounting
1.2K views

Adieu Company reported the following current assets and current liabilities for two recent years: a....