CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 19-2 Determining the Cost of Merchandise Inventory

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 19-2 FIRST-IN, FIRST-OUT INVENTORY COSTING METHOD page Total units on hand 2.Units from the most recent purchase 3.Units needed to equal the total units on hand 4.Unit price times fifo units 5.Total fifo cost

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON Units needed to equal total units on hand LAST-IN, FIRST-OUT INVENTORY COSTING METHOD page Total units on hand 3.Units from the earliest purchase 2.Beginning inventory units5.Unit price times lifo units 6.Total lifo cost

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON Cost of ending inventory WEIGHTED-AVERAGE INVENTORY COSTING METHOD page Weighted- average price per unit 1.Total cost of inventory available

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 19-2 CALCULATING THE COST OF MERCHANDISE SOLD page 572 Cost of Merchandise Sold = Fifo Cost of Ending Inventory – Cost of Merchandise Available for Sale $634.00=$386.00–$1,020.00

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 19-2 COMPARISON OF INVENTORY METHODS page 572

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 19-2 TERMS REVIEW first-in, first-out inventory costing method last-in, first-out inventory costing method weighted-average inventory costing method page 573