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Determining the Quantity of Merchandise Inventory
LESSON 19-1 Determining the Quantity of Merchandise Inventory
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INVENTORY RECORD page 566 3 1 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.
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STOCK RECORD 1 2 3 1. Purchase information 2. Sales information
page 567 1 2 3 1. Purchase information 2. Sales information 3. New balance on hand
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Determining the Cost of Merchandise Inventory
LESSON 19-2 Determining the Cost of Merchandise Inventory
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FIRST-IN, FIRST-OUT INVENTORY COSTING METHOD
page 569 3 4 2 5 1 1. 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
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LAST-IN, FIRST-OUT INVENTORY COSTING METHOD
page 570 6 1 2 3 4 5 1. Total units on hand 2. Beginning inventory units 5. Unit price times lifo units 3. Units from the earliest purchase 4. Units needed to equal total units on hand 6. Total lifo cost
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WEIGHTED-AVERAGE INVENTORY COSTING METHOD
page 571 1. Total cost of inventory available 2. Weighted-average price per unit 1 2 3 3. Cost of ending inventory
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CALCULATING THE COST OF MERCHANDISE SOLD
page 572 Cost of Merchandise Sold = Fifo Cost of Ending Inventory – Cost of Merchandise Available for Sale $1,020.00 – $386.00 = $634.00
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COMPARISON OF INVENTORY METHODS
page 572
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LESSON 19-3 Estimating Inventory
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GROSS PROFIT METHOD OF ESTIMATING INVENTORY
page 574 (continued on next slide)
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GROSS PROFIT METHOD OF ESTIMATING INVENTORY
page 574 (continued from the previous slide) The slides in this tutorial were based a PowerPoint presentation provided by South-Western Century 21 Accounting. The slides were edited and Microsoft Action Script characters were added to help meet the needs of my students.
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