Question

what is the perpetual inventory

PROBLEM SET B Ming Company uses a perpetual inventory system. It entered into the following purchases and sales trans- actions for April. (For specific identification, the April 9 sale consisted of 8 units from beginning inven- tory and 27 units from the April 6 purchase; the April 30 sale consisted of 12 units from beginning inventory, 3 units from the April 6 purchase, and 10 units from the April 25 purchase.) Problem 6-1B Perpetual: Alternative cost flows

Answer 1

Perpetual Inventory is Inventory System that helps to continuously track of the inventory balance.

Summary of answer
Periodic Inventory System	First in First out	Last in First out	Weighted Average	Specific Identification
Cost of goods sold	211,500	220,500	215,500	213,000
Ending inventory	24,000	15,000	20,000	22,500
Cost of Goods Available for sale	235,500	235,500	235,500	235,500
Income statement
Periodic Inventory System	First in First out	Last in First out	Weighted Average	Specific Identification
Sales revenue	770,000	770,000	770,000	770,000
Less: Cost of goods sold	211,500	220,500	215,500	213,000
Gross Profit	558,500	549,500	554,500	557,000

Date	Qty	Price	Value
Apr 9	35	12000	420000
Apr 30	25	14000	350000
Total	60		770000

Calculation

? X GS HOMEINSERT 2020 Apr 03.xlsx - Microsoft Excel DEVELOPER - 2 Sign in FILE PAGE LAYOUT FORMULAS DATA REVIEW VIEW N49 C D E F G H I Total 211,500 24,000 Last In First Out (LIFO) Method Purchase Qty Price Value Date Cost of goods sold Price Value Perpetual Inventory System Inventory on Hand Qty Price Value 2013000 60000 Qty Periodic Il First in Fit Cost of go 211,500 Ending iny 24,000 Cost of G 235,500 Apr 1 Apr 6 30 3500 105000 3000 3500 60000 105000 Apr 9 3000 45000 3500 3000 105000 15000 Periodic i First in Fir Sales reve 770,000 Less: Cost 211,500 Gross Prof 558,500 Apr 17 4500 22500 ৱিা হিন্দি মান্না। 3000 45001 45000 22500 Qty Apr 25 4800 48000 3000 4500 4800 45000 22500 48000 Date Apr 9 Apr 30 Total Apr 30 10 3000 15000 5 4800 4500 3000 48000 22500 30000 Total 220,500 15,000 49 50 Sheet1 Sheet2 Sheet3 + READY U - + 100% 01:12 Search the web and Windows AF ENG IN 20-04-20

? X GS HOMEINSERT 2020 Apr 03.xlsx - Microsoft Excel DEVELOPER - 2 Sign in FILE PAGE LAYOUT FORMULAS DATA REVIEW VIEW N74 Total | 60 | 220,500 5 15,000 Weighted Average Method Purchase Price Value Date Cost of goods sold Price Value Perpetual Inventory System Inventory on Hand Qty Price Value 20 3000 60000 Qty Apr 1 Apr 6 105000 165000 3500 Unit cost = 165000/50 3300 Apr 9 3300 115500 3300 49500 Apr 17 4500 22500 72000 Unit cost = 72000/20 3600 Apr 25 48000 120000 10 4800 Unit cost = 120000/30 4000 Apr 30 4000 100000 4000 20000 Total 215,500 20,000 Unit Method Specific Identification Goods Available for sale date Unit unit cost value 20 3000 60,000 Apr 6 30 3500 105.000 Sheet1 Sheet2 Sheet3 Periodic Inventory System Cost of goods sold Ending inventory unit cost value Unit unit cost value 20 3000 60,000 30 3500 105.000 Apr 1 75 READY U - + 100% Search the web and Windows 01:13 O 9 0 AF ENG x] IN 20-04-20

? X GS HOMEINSERT 2020 Apr 03.xlsx - Microsoft Excel DEVELOPER - 2 Sign in FILE PAGE LAYOUT FORMULAS DATA REVIEW VIEW N85 B D D E F C Apr 9 G J H 3300 K 3300 L 49500 35 115500 15 Apr 17 22500 72000 4500 Unit cost = 72000/20 3600 Apr 25 48000 120000 10 4800 Unit cost = 120000/30 4000 Apr 30 25 4000 100000 4000 20000 Total 60 215,500 5 20,000 Method Unit date Apr 1 Apr 6 Apr 17 Apr 25 Total Specific Identification Goods Available for sale Unit unit cost value 20 3000 60,000 30 3500 105,000 4500 22,500 10 4800 48,000 65 235,500 Periodic Inventory System Cost of goods sold Ending inventory unit cost value Unit unit cost value 20 3000 60,000 30 3500 105,000 5 4500 22,500 10 4800 48,000 60 213,000 22,500 Units available for sale Cost of goods available for sale $ 235,500 Number of ending inventory (65-60) 85 86 Sheet1 Sheet2 Sheet3 READY U - + 100% ENG Search the web and Windows 01:13 0 0 0 A F 0 x] IN 20-04-20