Class Notes (835,673)
Canada (509,326)
MGCR 211 (108)
Lecture

MGCR 211 Chapter 7.docx

5 Pages
129 Views
Unlock Document

Department
Management Core
Course
MGCR 211
Professor
Karen Zajdman- Borden
Semester
Winter

Description
MGCR 211 Chapter 7 3/7/2012 7:02:00 AM I. Two Systems for keeping track of inventory A. Periodic B. Perpetual II. How to cost inventory A. First In First Out (fifo) 1. Fifo perpetual a. Cost of Goods sold i. Opening inventory ii. + All purchases for year iii. Goods available for sale iv. – Ending inventory v. CGS B. Average 1. Moving Average a. Cost of Goods Sold i. Opening Inventory (1,000) ii. + Purchases (9,250) . iii. Goods Available (10,250) iv. – Ending Inventory (-4,855) v. Cost of Goods Sold (5,395) C. Specific Identification III. Example: Mathew Electronics A. Fifo Perpetual 1. Cost of Goods sold a. Opening inventory (1,000) b. + All purchases for year (9,250) c. Goods available for sale (10,250) d. – Ending inventory (-5,250) e. CGS (5,000) B. Fifo Periodic 1. Ending Inventory: a. 400 Remain b. 100 x 14 = 1,400 c. 250 x 13 = 3,250 d. 50 x 12 = 600 e. Ending Inventory =5,250 2. Same formula as perpetual after this C. Moving Average, Perpetual 1. Take total cost / total goods available for sale 2. Avg moves when new purchases are made / items are sold. 3. Cost of Goods Sold a. Opening Inventory (1,000) b. + Purchases (9,250) . c. Goods Available (10,250) d. – Ending Inventory (-4,855) e. Cost of Goods Sold (5,395) D. Average Cost, Periodic 1. Only update records at the end of the year 2. Ending inventory x Avg Cost a. 400 x $12.06 = $4,824 3. Ending inventory = Open Inventory + Purchases – Sales. = 400 units 4. Avg Cost = Total goo
More Less

Related notes for MGCR 211

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit