1. LESSON 19-1 Determining the Quantity of Merchandise Inventory
6/19/2018
LESSON 19-1
Determining the Quantity of Merchandise Inventory

2. TERMS REVIEW
page 568
periodic inventory – counting, weighing, or measuring items on hand.
Taken at least once a year – “physical” count inventory
perpetual inventory – keeping a continuous record of increases and decreases and balance on hand.
Aka - “book” inventory
Examples – WalMart, Weis, Giant, Target, etc.
inventory record
Used for periodic inventories
Shows inventory and cost amount of merchandise
stock record – used to show quantity, amount sold and amount on hand
Used as a “reordering point”
stock ledger - - a file of stock records for all merchandise on hand.
LESSON 19-1

3. INVENTORY RECORD
page 566 1 3 2
1. Write the stock number and description before the periodic inventory begins.
2. Write the actual count in the No. of Units on Hand column.
3. Write the unit price and calculate the total cost after the physical inventory is completed.
LESSON 19-1

4. STOCK RECORD 1 3 2 1. Purchase information 2. Sales information
page 567 1 3 2
1. Purchase information
2. Sales information
3. New balance on hand (add increases, subtract decreases).
LESSON 19-1