century 21 accounting © 2009 south-western, cengage learning lesson 19-1 determining the quantity...
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 19-1LESSON 19-1
Determining the Quantity of Merchandise Inventory
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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
INVENTORY RECORDINVENTORY RECORD
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page 566
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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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
STOCK RECORDSTOCK RECORD page 567
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1. Purchase information2. Sales information
3. New balance on hand
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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERMS REVIEWTERMS REVIEW
periodic inventory perpetual inventory inventory record stock record stock ledger
page 568
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 19-2LESSON 19-2
Determining the Cost of Merchandise Inventory
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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
FIRST-IN, FIRST-OUT INVENTORY FIRST-IN, FIRST-OUT INVENTORY COSTING METHODCOSTING METHOD
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page 569
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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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
4. Units needed to equal total units on hand
LAST-IN, FIRST-OUT INVENTORY LAST-IN, FIRST-OUT INVENTORY COSTING METHODCOSTING METHOD page 570
1. Total units on hand
3. Units from the earliest purchase2. Beginning inventory units 5. Unit price times lifo units
6. Total lifo cost
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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
3. Cost of ending inventory
WEIGHTED-AVERAGE INVENTORY WEIGHTED-AVERAGE INVENTORY COSTING METHODCOSTING METHOD
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page 571
2. Weighted-average price per unit
1. Total cost of inventory available
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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
CALCULATING THE COST OF CALCULATING THE COST OF MERCHANDISE SOLDMERCHANDISE SOLD page 572
Cost ofMerchandise
Sold=
Fifo Cost of Ending
Inventory–
Cost ofMerchandiseAvailable for
Sale$634.00=$386.00–$1,020.00
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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
COMPARISON OF INVENTORY COMPARISON OF INVENTORY METHODSMETHODS page 572
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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERMS REVIEWTERMS REVIEW
first-in, first-out inventory costing method last-in, first-out inventory costing method weighted-average inventory costing method
page 573
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 19-3LESSON 19-3
Estimating Inventory
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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
GROSS PROFIT METHOD OF GROSS PROFIT METHOD OF ESTIMATING INVENTORYESTIMATING INVENTORY page 574
(continued on next slide)
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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
GROSS PROFIT METHOD OF GROSS PROFIT METHOD OF ESTIMATING INVENTORYESTIMATING INVENTORY page 574
(continued from previous slide)
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LESSON 19-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERM REVIEWTERM REVIEW
gross profit method of estimating inventory
page 576