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Lesson 19 2
1.
LESSON 19-2 Determining the
Cost of Merchandise Inventory CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2.
2 FIRST-IN, FIRST-OUT INVENTORY COSTING
METHOD page 569 3 4 2 5 1 1. 2. 3. 4. 5. Total units on hand Units from the most recent purchase Units needed to equal the total units on hand Unit price times fifo units Total fifo cost CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 19-2
3.
LAST-IN, FIRST-OUT INVENTORY COSTING
METHOD 3 page 570 3 2 5 4 1 6 1. Total units on hand 2. Beginning inventory units 5. Unit price times lifo units 3. Units from the earliest purchase 6. Total lifo cost 4. Units needed to equal total units on hand CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 19-2
4.
WEIGHTED-AVERAGE INVENTORY COSTING METHOD 4 page
571 1. Total cost of inventory available 2. Weightedaverage price per unit 1 3. Cost of ending inventory 2 3 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 19-2
5.
CALCULATING THE COST
OF MERCHANDISE SOLD Cost of Merchandise Available for Sale $1,020.00 5 page 572 Fifo Cost of – Ending Inventory = Cost of Merchandise Sold – = $634.00 $386.00 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 19-2
6.
COMPARISON OF INVENTORY METHODS CENTURY
21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 page 572 LESSON 19-2
7.
7 TERMS REVIEW page 573
first-in, first-out inventory costing method last-in, first-out inventory costing method weighted-average inventory costing method CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 19-2
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