FNS40217 Certificate IV In Accounting And Bookkeeping - Assessment Activities Tasks

Question 6

Barbell Sports Pty Ltd has adopted a perpetual inventory system.

Required:

a. Which of the following sequences best describes the keys steps in a perpetual inventory system? (Select the correct answer)

1. Purchases recorded on stock card > COGS recorded at time of sale > period end stocktake.
2. Purchases recorded on stock card > Period end stocktake > COGS determined by stocktake.
3. Purchases recorded as an expense > no entry to COGS at time of sale > COGS determined by stocktake.

b. Under the perpetual inventory system, an inventory gain has been detected. The journal to record this gain would be:

Debit Account: (enter the account name)_____________
Credit Account: (enter the account name)_____________

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