...Perpetual and Periodic Inventory Systems Examples of companies that use perpetual inventory would be a place like Best Buy or Target, where they constantly keep track of how much inventory is available for sale and the inventory that they have sold. For instance, if they sold fifty televisions in one day and had twenty-five left they would know that immediately just by looking it up in their computer system because it is tracked each time they sell something. This also lets them look at how sales are going for certain items, and if they feel they are going to quickly run out of an item they will order more. And if they purchased twenty laptops they would instantly be put into the computer system and they would be able to see that they have them in stock even if they weren’t out on the sales floor. The perpetual inventory system constantly updates accounting records for merchandising actions, mainly inventory quantity and availability. A periodic inventory system is one that updates the accounting records for merchandise transactions only at the end of a period. The amount of time in that period is not always the same. This inventory system is used by companies that do not need a perpetual inventory system or those that do not have the resources. An example would be a small family run business that sells paper goods. They sell maybe fifty boxes of tissues a month. They aren’t going to keep track of each sale they make because they don’t need to. At the end of the month they...
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...the allowance for sales returns account. The company made $650,000 sales on account during 2011. This merchandise had a cost of $390,000. False Value estimates that 6% of all sales will be returned. During 2011, customers returned merchandise from 2011 sales of $28,000 and $12,000 from 2010 sales (cost of 60%). All returns were made prior to payment. The company uses a perpetual inventory system. a. Record the journal entry for the sale of goods. b. Record the journal entry for the actual 2011 returns c. Record the journal entry for the 2010 returns. d. Record the journal entry to estimate sales returns for 2011. e. What is the balance in the allowance for sales returns account at the end of 2011? 1. Hopwood Chairs had credit sales of $450,000 in 2011. Hopwood has a 25% markup on all merchandise. The company estimates that 3% of all sales will be returned. Customers returned $11,200 worth of merchandise in 2011 ($9,000 related to 2011 sales and $2,200 related to 2010 sales). All returns were made prior to payment. The company uses a perpetual inventory system. f. Record the journal entry for the sale of goods. g. Record the journal entry for the actual 2011 returns h. Record the journal entry for the 2010 returns. i. Record the journal entry to estimate sales returns for...
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...Executive Summary: Our report focuses on the “Application of Accounting in a Merchandising Business - Prime International Limited”. Accounting is important in business because it offers great support to management for planning, controlling as well as decision making process. It is with the aid of accounting information that the performance of a unit can be evaluated, at the same time as, its logical records make possible to get rid of the frauds and the thefts. The main interested parties for the company are stockholders who always want to know about the performance of his or her company. To prepare a financial statement, an organization must start its work from identifying recording, summarizing, and adjusting the transactions and at last preparation of financial statements. Accounting is important for businesses for several reasons. Effective record keeping helps a business survive efficiently all the while keeping track of the operations of the company. Background of the Study: The garments industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 35 years. At present, the country generates about $6 billion worth of products each year by exporting garment. The industry provides employment to about 3 million workers of whom 90% are women. Two non-market elements have performed a vital function in confirming the garment industry's continual success; these elements are (a) quotas under Multi-Fibred Arrangement1...
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...cost of goods sold? How does beginning and ending inventory affect cost of goods sold? What are the journal entries a merchandising organization would use to record the purchase and subsequent sale of merchandise? How would these transactions differ with a periodic versus a perpetual inventory system? Why are perpetual inventory systems so much more popular today than back in the early 1960s and earlier? Why would a company employing a perpetual inventory system still take a physical inventory periodically? Home Work Hour aims to provide quality study notes and tutorials to the students of ACC 290 Week 4 Discussion Question 1 in order to ace their studies. ACC 290 WEEK 4 DISCUSSION QUESTION 1 To purchase this visit here: http://www.nerdypupil.com/product/acc-290-week-4-discussion-question-1/ Contact us at: nerdypupil@gmail.com ACC 290 WEEK 4 DISCUSSION QUESTION 1 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? What are the journal entries a merchandising organization would use to record the purchase and subsequent sale of merchandise? How would these transactions differ with a periodic versus a perpetual inventory system? Why are perpetual inventory systems so much more popular today than back in the early 1960s and earlier? Why would a company employing a perpetual inventory system still take a physical inventory periodically? Home Work Hour aims to provide quality...
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...Under the periodic inventory system, the opening stock is accounted as an asset and purchases are accounted as expense. The closing stock is accounted as an asset and is determined based on physical count. Basically, the periodic inventory system is designed to maintain updated figures in both the inventory and cost of goods sold accounts. Separate subsidiary ledger accounts show the balance for each type of inventory so that the company can manage the size and types of merchandise (Littlehale, 2010). Under the perpetual inventory system, however, stocks are accounted as assets and any additional transactions are added or reduced from the asset account. This system is cheaper because no attempt is made to monitor inventory balances until financial statements are to be prepared. Berwick Traders Ltd might consider changing from a periodic inventory system to a perpetual system because the perpetual inventory system establishes better control over inventory. Under the perpetual inventory system, inventory account is dynamic as it updates as soon as receipts and payments are made. Frequent updates will enable Berwick Traders Ltd to determine how much inventory they have on hand at any given moment, thereby making it easier to know when to order more. Furthermore, it reduces manual effort of using physical count to maintain updated balances. Though perpetual inventory system is slightly costly than the periodic inventory system, it will improve the accuracy of Berwick Traders Ltd’s...
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...Inventory Records: It's good business Introduction Jewelers Mutual Insurance Company developed Inventory Records: It's good business because proper inventory record keeping is a necessary tool for a jewelry business to be successful. Taking the time to establish and maintain accurate and up-to-date inventory records will save you time and money in the event of an insurance claim. If you have a loss, your inventory records will prove what inventory has been lost and its value so that your claim can be settled quickly. If you can't prove that missing items existed, the payment for your loss may be delayed or possibly denied. In addition, inventory records are required by your insurance policy. Recovering insured losses isn't the only reason to establish proper inventory records. Inventory records are useful in planning. They can indicate when to reorder merchandise, what's selling and what's not. Your records also can alert you to missing items and errors in entry, and they help deter internal theft. This guide provides information for retailers, wholesalers and manufacturers, with a specific section focusing on the unique needs of wholesalers and manufacturers. Because each jewelry operation differs in size, method of operation, and type of finished products, it's difficult to recommend one inventory system that will work for every firm. Many of the recommendations listed in this guide apply to retailers, manufacturers and wholesalers; some do not. Work...
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...Inventory Systems Michael Asibu, Woodrow Lemon, Laura Moll, Jenessa Nagozruk, Brian Norton QRB/501 May 21, 2012 Ohidul Siddiqui Inventory Systems With the increasing demand to cut costs and increase revenues, developing the right inventory systems have become essential to compete in business. According to the Counselors to America’s Small Business, “Control of inventory, which typically represents 45% to 90% of all expenses for business, is needed to ensure that business has the right goods on hand to avoid product shortage and meet the consumer’s needs” (Counselors to America’s Small Business, p. 1). To ensure proper business practice an evaluation of inventory systems is necessary to ensure businesses can be cost-efficient, profitable, and provide for consumers’ needs. Top and Bottom System The top and bottom inventory system seems simple at first glance. “In this system, [the company] puts limits on how high and low [the company] inventory levels can go for each product (Fishbowl, 2012). The company sets two levels for the stock. The first is the level the managers know that they need to order, and the other is the level that the managers need to bring the stock back to. So if the top level was 15 and the bottom level was five the managers would order 10 more when the company hit five products left. This works to an extent but if the products were snow shovels, then keeping 15 on hand yearly would not make sense. The business would be losing valuable storage...
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...Inventory Proposal Part Two of Three Team A QRB 501 March 07, 2012 Terrance Feravich The research discussion is toward the data collection, which converts times series data for McDonald’s Fast Food Restaurant inventory analysis and University of Phoenix summer seasonal index. The raw data represents inventory data over a four year time. In this assignment the B team will illustrate statistical information, discuss the inventory systems and problems, explain the problem this team is addressing, and show a table on how the data has been converted into dices. Below are the inventory indexes from the previous assignment in week two. McDonald’s Inventory Analysis by Ratio Index |Year |2000 |2001 |2002 |2003 | |Liquidity Analysis | | | | | |Current Ratio |0.70 |0.81 |0.71 |0.76 | |Quick asset ratio |0.66 |0.76 |0.66 |0.71 | |Accounts receivable turnover |17.88 |16.86 |18.01 |23.34 | |Days supply of receivables |20.41 ...
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...Inventory Control Jane Marshall BUS/644 May 28, 2012 Mike Williams Harvey Industries Background Harvey Industries, a Wisconsin company, specializes in the assembly of high-pressure washer systems and in the sale of repair parts for these systems. The products range from small portable high-pressure washers to large industrial installations for snow removal from vehicles stored outdoors during the winter months. Typical uses for high-pressure water cleaning include: Automobiles Airplanes Building maintenance Barns Engines Ice cream plants Lift trucks Machinery Swimming pools Industrial customers include General Motors, Ford, Chrysler, Delta Airlines, United Parcel Service, and Shell Oil Company. Although the industrial applications are a significant part of its sale, Harvey Industries is primarily an assembler of equipment for coin operated self-service car wash systems. The typical car wash is of concrete block construction with an equipment room in the center, flanked on either side by a number of bays. The cars are driven into the bays where the owner can wash and wax the car, utilizing high-pressure hot water and liquid wax. A dollar bill changer is available to provide change for the use of the equipment and the purchase of various products from dispensers. The products include towels, tire cleaner, and upholstery cleaner. In recent years Harvey Industries has been in financial difficulty. The company has lost money for three of the last...
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...Pamplona Tres,Las Piñas City Title: Computerized Inventory System Subject: Software Engineering Author: Bautista,Jan Royette L. Calim,Michellle Lumbang,Matt Andrew Degree: 2nd year student Date Started: January 2016 Date completed: Objective of the Study The general objective of the study is to develop a computerized inventory system that will make the owners inventory system easier and comfortable for the benefits of the company. And to identify a minimum stock level to keep detailed records with a good inventory system. Scope and Limitation The Computerized Inventory System provides a good quality system that can organize the food inventory system easier than manual of the system. The Inventory keeper of the company can handle the security of their inventory using the system provides. The system we provided is limited because it only keeps or stores the inventory record. Easily deletes the data in the system. The other limitation is that an employee might enter data incorrectly, introducing inaccurate information that can compromise decision-making. Output of the study A computerized inventory system can manage the stocks of their inventory if it is low count or a big count of food supply. The system can be also use for keeping the previous data of the food inventory. Stores the food stocks and manage inadequate and volume...
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...RESEARCH PROPOSAL / CONCEPT PAPER FORM R & D Form 01 I. Title | “A COMPARATIVE STUDY INTERMS OF PERFORMANCE BETWEEN THE MALE AND FEMALE STUDENT PRACTICUMERS OF THE UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA- LASPINAS CAMPUS” “A COMPARATIVE STUDY INTERMS OF PERFORMANCE BETWEEN THE MALE AND FEMALE STUDENT PRACTICUMERS OF THE UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA- LASPINAS CAMPUS” | II. Proponent(s) | Christmas Dianne S. Coralde Jhoanna Lyca R. Velchez Michael O. Espinar Christmas Dianne S. Coralde Jhoanna Lyca R. Velchez Michael O. Espinar | III. College | College Of International Hospitality Management College Of International Hospitality Management | IV. Background and Significance | The Hotel and Restaurant Management curriculum of the university is designed to prepare students for entry level /supervisory/ management positions in the lodging, food service Industry and other related operations. All educational institutions offering the Hotel and Restaurant Management programs require practicum training or supervised work experience. It allows the students to be exposed to the different from an apprenticeship or internship where training is focused only on one area of operation or program. The practicum program is a joint effort between the school and the participating Institution (hotels) to uphold industry standards and fully tap the expertise of future practitioners in the industry. While the school provides...
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...Essay on the Vision of the UPHSD-BHS Department from an Alumna Vision, as defined in the dictionaries, is something that you see or dream especially as part of a religious or supernatural experience. Therefore, the University of Perpetual Help System DALTA’s Vision, is an ambition the school wants to see come to life through the students that have trusted the school to form and shape their mind, heart, and hand. The University believes that every individual can attain perfection and the highest quality of performance through developing and promoting the right way of life. Thus, Perpetualites’ achievement at the university in terms of areas of formation could be continued later in his/her professional life, and in everything that the Perpetualite does in life. The family which is the foundation of society plays a great role in the life of every student. However, the educational institutions still have the responsibility to mold the students’ Character in preparation for their good future and excellence in their professions. The main goal of the university is to participate in the production and the delivery of the total spectrum of education and health care so that as private sector, it could share in the nation’s education and health planning program implementation, thereby, help accelerate national development by improving education and national health. The school’s Vision has broadened my horizons and has helped me be the person I am today. Not only are my ambitions...
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...individually. Software/internal information flow First factor which gives Zara competitive advantage according to me is their software. The fact that all the software (PDA) used currently by Zara is developed by them gives them huge competitive advantage. Having the software developed internally makes it much more efficient and user friendly because it is compatible with the companies daily operations. Everything starting from the operational procedures, performance measures, and even office and store layouts are designed to make information flow simple. Making the internal information flow faster and more efficient is one of the key success factors for Inditex. The fact that all the stores are directly connected to the main system which in collects all the data is a great way for analyzing things that are going on in different stores. But all in all we would say that this factor is...
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...Businesses and Inventory Systems Inventory Systems Inventory systems are tracking systems designed for companies to maintain an accurate accountability of products in stock or on hand. Each time items are added or removed from inventory items on hand either decrease or increase in number. This paper will review inventory systems within Starbucks, Wal- Mart, Dell, Arby’s, and Starbucks. The paper will also provide information regarding the success of the inventory systems and if the companies are happy with the current systems. Businesses and Inventory Systems Dell is a leading global software company that manufactures desktop computers, notebook computers, network servers, work stations, and storage products. Dell uses the Just-In Time inventory system. Just-In-Time means a company can receive raw materials just in time to go into production and complete and assemble manufacturing parts just in time to ship to customers (Accounting 4 Management, 2012). The advantages of the Just-In-Time system are that it permits Dell to reduce overhead and have certainty that products are available. The Just –In-Time inventory system reduces the cost of doing business. For example, Dell does not have to spend an enormous amount of funds on the cost of warehouse storage and the customer receives the benefit of lower cost for products. The company has a high satisfaction rating because of their ability to produce products at a fast rate. The challenge includes the possibility...
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...Systems Build Project MGT222 – Management Seminar Inventory Management Buehler’s Fresh Foods grocery store in Ohio, founded in 1929 by E.L. (Ed) Buehler and his wife, Helen, has a long and successful history, mainly due in part to Ed’s vision and his experience as an A&P employee. After opening their first store in New Philadelphia, the Buehler family moved the business to Wooster in 1932 and opened a store near the northeast corner of Public Square. Today, Buehler’s Fresh Foods is still owned by the Buehler family and operated by its “third generation” from the store’s Wooster headquarters. The Buehlers’ innovative and creative spirit has made the Ohio grocery store chain a pacesetter for independent grocers nationwide. (Buehler’s Fresh Foods) Needs Analysis Unfortunately, Buehler’s Fresh Foods is lacking the technology needed to compete with the market today. Currently, the company tracks inventory with a simple pen and paper technique. This system requires hours of unneeded manpower and is very inefficient in determining the perishable dates of many grocery products. Proper inventory management will allow the company to track the products they sell. The company can see at a glance what items they sell the most, what time of the year that more are sold, and have a chance to see what patterns develop so they can plan buying accordingly. It will also help them track products that don't sell as often, or at all, so they can either not order as much as they would routinely...
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