CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 19-1 Determining the Quantity of Merchandise Inventory

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 19-1 INVENTORY RECORD page 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.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 19-1 STOCK RECORD page Purchase information 2.Sales information 3.New balance on hand

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 19-1 TERMS REVIEW periodic inventory perpetual inventory inventory record stock record stock ledger page 568

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 19-2 Determining the Cost of Merchandise Inventory

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 19-1 FIRST-IN, FIRST-OUT INVENTORY COSTING METHOD page 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 7 LESSON Units needed to equal total units on hand LAST-IN, FIRST-OUT INVENTORY COSTING METHOD page Total units on hand 3.Units from the earliest purchase 2.Beginning inventory units5.Unit price times lifo units 6.Total lifo cost

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON Cost of ending inventory WEIGHTED-AVERAGE INVENTORY COSTING METHOD page Weighted- average price per unit 1.Total cost of inventory available

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 19-1 CALCULATING THE COST OF MERCHANDISE SOLD page 572 Cost of Merchandise Sold = Fifo Cost of Ending Inventory – Cost of Merchandise Available for Sale $634.00=$386.00–$1,020.00

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON 19-1 COMPARISON OF INVENTORY METHODS page 572

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 19-1 TERMS 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 19-3 Estimating Inventory

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 13 LESSON 19-1 GROSS PROFIT METHOD OF ESTIMATING INVENTORY page 574 (continued on next slide)

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 14 LESSON 19-1 GROSS PROFIT METHOD OF ESTIMATING INVENTORY page 574 (continued from previous slide)

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 15 LESSON 19-1 TERM REVIEW gross profit method of estimating inventory page 576