View attached explanation and answer. Let me know if you have any questions.College of Administration and Finance SciencesAssignment (2)Deadline: Saturday 6/11/2021 @ 23:59Course Name: Principles ofAccountingStudent’s Name:Course Code: ACCT101Student’s ID Number:Semester: 1stCRN:Academic Year: 1443 HFor Instructor’s Use onlyInstructor’s Name:Students’ Grade:/5Level of Marks: High/Middle/LowCollege of Administration and Finance SciencesQ1. Perpetual system of inventory.1.Types of inventory valuation methods.LIFO means last in first out and is used in the sale of product items from the goods inventory,items that are the newly purchased. FIFO means first in first out and is used in the sale of productitems that are oldest in the inventory. Specific identification method is one in which the physicalflow of product is tracked and in which each item unit is individually identified when allocating thecost of goods sold (Heintz & Parry, 2016). Weighted average implies to a method that is used toallocate the cost of goods through determining the average cost of items that are identical.General journal recording March 16 sale under FIFO methodDateAccountDebitedMarch 16Cash640SalesCredited640(Recorded for cashsales SAR 16*40units)March 16Cost of goods soldInventory(Recorded for cost ofgoods sold for cashSAR 10*40 units)400400College of Administration and Finance SciencesGeneral journal recording March 16 sale under LIFO methodDateAccountDebitedMarch 16Cash640SalesCredited640(Recorded for cashsales SAR 16*40units)March 16Cost of goods sold480Inventory480(Recorded for cost o…
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