All of the following are reasons to use an estimated method of costing inventory except
A) perpetual inventory records are not maintained
B) purchase records are not maintained
C) a disaster has destroyed the inventory records and the inventory
D) interim financial statements are required but physical inventory is only taken at the end of the financial accounting period

Question

All of the following are reasons to use an estimated method of costing inventory except​
A) perpetual inventory records are not maintained
B) purchase records are not maintained
C) a disaster has destroyed the inventory records and the inventory
D) interim financial statements are required but physical inventory is only taken at the end of the financial accounting period

Quizplus · Accepted Answer

If purchase records are not maintained, an estimated method may be the only option to determine the cost of inventory. However, if purchase records are maintained, actual costing methods could be used instead of estimation.

All of the Following Are Reasons to Use an Estimated