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professor, can you explain in case of perpetual inventory count all inventory is counted at least once during the year then in that case at the yr end, say 31dec 20X5, how can we take value of inventory counted at one inventory line on 31march 20X5? I mean changes to inventory must have taken place in these 9 months so then that will be obviously be missed if counting took place in march!
Please see the post that I included in answer to your previous post:
https://opentuition.com/topic/continuos-inventeur-countingThe WHOLE point of going to trouble of maintaining accurate perpetual inventory records is that inventory valuation will be based on the inventory and not a full physical count – i.e. full physical count is rendered unnecessary.
Ok so what you are trying to say is that during perpetual count we physically inspect the inventory at least once a yr and then for the rest of the months to reporting date we place reliance on inventory system/records?
if significant adjustment were required during perpetual count then FULL yr end count will be required, and that(full yr end count) will be carried out through physical inspection?
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