LESSON 6-1 The Nature of Merchandise Inventory

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Presentation transcript:

LESSON 6-1 The Nature of Merchandise Inventory 6/17/2018 LESSON 6-1 The Nature of Merchandise Inventory RED

FLOW OF INVENTORY COSTS page 171 Beginning Merchandise Inventory Net Purchases Ending Merchandise Inventory Cost of Sold Cost of Merchandise Available for Sale LESSON 6-1

EFFECTS OF ERRORS IN COSTING AN INVENTORY page 171 LESSON 6-1

STOCK RECORD FOR A PERPETUAL INVENTORY SYSTEM page 173 1 2 3 4 1. Record the description information. 3. Record all sales transactions. 2. Write the beginning quantity. 4. Enter all purchase transactions. LESSON 6-1

INVENTORY RECORD USED FOR THE PERIODIC INVENTORY page 174 1 2 3 4 5 6 1. Enter inventory date and item description. 2. Record stock numbers and descriptions. 3. Write the number of units on hand. 4. Record the unit price. 5. Calculate and record the total item cost. 6. Total the column. LESSON 6-1

TERMS REVIEW consignment consignee consignor stock record stock ledger page 175 consignment consignee consignor stock record stock ledger purchase order inventory record LESSON 6-1