ECON 0710 Lecture Notes - Lecture 7: Income Statement, Balance Sheet, Perpetual Inventory
4 Apr 2016
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Primary objectives: safeguarding inventory from damage, reporting inventory in the financial statements. If this matches other two, then inventory is recorded in accounts. Using two way, mirrors, cameras, security tags, and guards. Inventory costing methods under a perpetual inventory system. Fifo, specific not affected in perpetual vs periodic. Perpetual inventory using fifo (first in, first out) 36 units (the first 10 are sold first, then the remaining 26) (80-36=44 units left) A) determine cogs on nov 21 only: =10 x + 26 x =50+182=. B) inventory on nov 30: only the products are left so x 44=. Perpetual inventory using lifo (last in, first out) 30 units sold (10 units remain at ) 36 units (the last units are sold, so 36 units at sold) (70-36=34 at , 10 at , 44 total) A) determine cogs on nov 21 only: =36 x =252.
