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    Inventory Accounting

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    An example illustrating Periodic vs Perpetual inventory accounting

    © BrainMass Inc. brainmass.com February 24, 2021, 2:18 pm ad1c9bdddf
    https://brainmass.com/business/inventory/inventory-accounting-13089

    Solution Preview

    PERIODIC VS PERPETUAL ASSUMPTION EXAMPLE

    Assume:
    Type Units Unit Price $
    BI 10 $1 10
    Sell 8 @ $4
    P1 10 $2 20
    Sell 8 @ $4
    P2 10 $3 30

    PERIODIC PERPETUAL

    FIFO FIFO

    SALES $64 SALES $64

    COGS 10 @ 1=10 COGS 8 @ 1=8
    6 @ 2=12 22 2 @ 1=2
    6 @ 2=12 22

    GM 32 32

    EI 4 @ 2=8 [email protected]=8
    10 @ 3=30 38 10 @ ...

    Solution Summary

    The expert examines inventory accounting. Periodic versus perpetual inventory accounting is examined.

    $2.19

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