Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases, and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time. Weighted-average cost method: Under weighted average cost method, the company calculates a new average cost after every purchase is made. It is determined by dividing the cost of goods available for sale by the units on hand. To record: inventory, purchase and cost of merchandise sold data in perpetual inventory record.
Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases, and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time. Weighted-average cost method: Under weighted average cost method, the company calculates a new average cost after every purchase is made. It is determined by dividing the cost of goods available for sale by the units on hand. To record: inventory, purchase and cost of merchandise sold data in perpetual inventory record.
Solution Summary: The author explains the weighted average cost method, which is calculated by dividing the cost of goods available for sale by the units on hand.
Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases, and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.
Weighted-average cost method:
Under weighted average cost method, the company calculates a new average cost after every purchase is made. It is determined by dividing the cost of goods available for sale by the units on hand.
To record: inventory, purchase and cost of merchandise sold data in perpetual inventory record.
(2)
To determine
To calculate: the sales and cost of merchandise sold accounts and gross profit.
(3)
To determine
To calculate: Ending inventory cost for the period.
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Accounting for Merchandising Operations Recording Purchases of Merchandise; Author: Socrat Ghadban;https://www.youtube.com/watch?v=iQp5UoYpG20;License: Standard Youtube License