MGMT 20000 Lecture Notes - Lecture 19: Perpetual Inventory, Accounts Payable, Accounts Receivable
29 Oct 2018
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On april 25, inventory is purchased for ,700 on account (300 units at each) On july 17, inventory sold on account for (300 units at each) (based on fifo method) Companies generally maintain their own inventory records on a fifo basis. To report using lifo, a year-end adjustment to inventory needs to be made (lifo adjustment) The difference in reported inventory when using lifo instead of fifo is commonly referred to as the lifo reserve commonly referred to as the lifo reserve. A perpetual inventory system measures cost of goods sold by: Making entries to the inventory account for each purchase and sale. Kensal green, inc. sold inventory for that was purchased for . Green records inventory sold using perpetual inventory system by: The disclosure that shows the difference in the cost of inventory between lifo and.
