lesson 19-2
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LESSON 19-2. Determining the Cost of Merchandise Inventory. 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. - PowerPoint PPT PresentationTRANSCRIPT
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 19-2LESSON 19-2
Determining the Cost of Merchandise Inventory
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2
LESSON 19-2
FIRST-IN, FIRST-OUT INVENTORY FIRST-IN, FIRST-OUT INVENTORY COSTING METHODCOSTING METHOD
11
22
3344
55
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
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 19-2
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
6611
2233
44
55
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 19-2
3. Cost of ending inventory
WEIGHTED-AVERAGE INVENTORY WEIGHTED-AVERAGE INVENTORY COSTING METHODCOSTING METHOD
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22
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page 571
2. Weighted-average price per unit
1. Total cost of inventory available
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 19-2
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
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 19-2
COMPARISON OF INVENTORY COMPARISON OF INVENTORY METHODSMETHODS page 572
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 19-2
TERMS REVIEWTERMS REVIEW
first-in, first-out inventory costing method last-in, first-out inventory costing method weighted-average inventory costing method
page 573