BUS 591 – Week 3
Week 3 DQ 1 Perpetual Inventory System: Present a detailed explanation of the recording of purchases under a perpetual inventory system. Use hypothetical figures to illustrate the perpetual inventory system. After presenting your hypothetical figures, discuss how a perpetual inventory system is different from a periodic inventory system. Your answer should illustrate understanding of the perpetual inventory system. Respond to at least two of your classmates’ posts.
Week 3 DQ 2 Inventory Valuation Methods: Identify the differences between F.I.F.O., L.I.F.O., and the average-cost method of inventory valuation. Be sure to include the effects of each method on cost of goods sold and net income in your answer. Also discuss the differences between the physical movement of goods and cost flow assumptions. Your answer should illustrate understanding of the three major inventory valuation methods, and the relationship between physical inventory flow and cost flow assumptions. Respond to at least two of your classmates’ posts.
BUS 591 Week 3 Homework Problems: Complete the following Workbook Template Week Three or you may complete the problems E5-2, E5-6 and P5-5B from Chapter 5 and Problems 6-2B and 6-3B Chapter 6. Submit your work to your instructor by the posted due date. Show all your work in order to earn full credit.
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