FLOW OF INVENTORY COSTS

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Presentation transcript:

FLOW OF INVENTORY COSTS Beginning Merchandise Inventory Net Purchases Ending Merchandise Inventory Cost of Sold Cost of Merchandise Available for Sale Lesson 6-1, page 168

STOCK RECORD FOR A PERPETUAL INVENTORY SYSTEM 1. Record the description information. 1 2. Write the beginning quantity. 2 3. Record all sales transactions. 3 4 4. Enter all purchase transactions. Lesson 6-1, page 170

INVENTORY RECORD USED FOR THE PERIODIC INVENTORY 3 3. Write the number of units on hand. 1. Enter inventory date and item description. 1 4 4. Record the unit price. 5 5. Calculate and record the total item cost. 2 2. Record stock numbers and descriptions. 6 6. Total the column. Lesson 6-1, page 171

TERMS REVIEW consignment consignee consignor stock record stock ledger purchase order inventory record Lesson 6-1, page 172