Class 10 After-Class Slides -0922 Inventory Measurement -...

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InventoryMeasurementZach Zhiguang Wang
AgendaAssignment of Case Study 1Periodic vs Perpetual SystemCost Flow AssumptionsLIFO, FIFO and Average Cost LIFO ReserveDollar-Value LIFO
Perpetual and Periodic SystemsPerpetualRecord sales and inventory changes continuallyPeriodic No inventory journal entries at point of sale Inventory changes recorded after a physical count at the end of the periodDifferenceTimelinessCost
Various Inventory Costing MethodBeginning Balance 6,000 units at $8 each 01/05, Sell 3,000 units 01/10, Buy 5,000 units at $9 each 01/12, Sell 2,000 units01/18, Buy 6,000 units at $10 each01/20, Sell 4,000 units Calculate January’s ending inventory and cost of goods sold under (1) perpetual FIFO (2) periodic FIFO (3) perpetual LIFO (4) periodic LIFO (5) perpetual average cost (6) periodic average cost
Various Inventory Costing Method SolutionFIFOPerpetualPeriodicCOGS 75,000COGS 75,000EB 78,000EB78,000LIFOPerpetualPeriodicCOGS 82,000COGS 87,000EB 71,000EB66,000Average CostPerpetualPeriodicCOGS 78,500COGS 81,000EB 74,500EB72,000

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