the perpetual system
and the average cost that goes with that course this method
is all but more complicated than be periodic system because the periodic
system
we just basically created a weighted average
and then we had an average cost let's say twelve dollars
multiplied it by however many units be resold
and then reread say that the cost of goods sold would be like 2400 but this
this for this produce on average cost method
for the perpetual system rocks gonna have to create on moving average
after every her just that we make like
on generate a second are generally enter the eighteen
so let's go ahead see how we're gonna do this let's go for it though it's so
basically right off the bat we have beginning inventory which is
units and
there at ten dollars and of course we also have a purchased
purchase which is two hundred units acts
fifteen dollars so like I said after every purchase rehab he creates a new
average cost for our units because
the thing is if you've ever looked at a
had an entry for perpetual system with me usually sell a product
at all have a revenue injury like accounts ear bone cells but will also
have
our costs goods sold the injury in which is our expands
and be in the inventory being decrease in
cents the inventory is being decreased are expecting it
we're getting rid of some inventory so it's going to affect our unit costs
after every after pre-sales that's why whenever we
purchase new goods were gonna have to create I knew average cost so
our average cost right now be helped 500 units
and the cost
agreed to be used use inventory amounts will be
,000 which means that's we have six thousand dollars worth of inventory
and bats
going to be twelve dollars twelve dollars
eight units rain now are
she 36,000 divided by 500 units
is going to be well dollar the unit sadat's
that's what are our bridge cost right now per unit that is so
now we have our sales entry rates
right here for three hundred units so we can perform
are our cost gets old for that amount so
units 300 units multiplied
by by twelve dollars
units is going to be but it's going to be
six hundred dollars which is our
across a good soul for that entry and
the next one is going to be a purchase for a hundred dollars so
right now we have since we've sold 300 units
and we had 500 units to the European now have 200 units
so you wanna come up with however many units you have lapsed
ants we're going to use the average cost because
this is how much the units are
on or above the cost is for our 200 units so
right now we have two hundred units at twelve dollars
which is worth 2400 dollars but we're going to make this purchase now
a hundred units at seventeen dollars
so we're gonna create now a new unit cost you see this is
what the moving averages and that's going to be seventeen hundred dollars
will come up where our new total cost inventory
and our total units so pretty one hundred dollars
and you gotta buy 300 units
is going to give us an average costs up thirteen dollars
and 67 sensor so now that we are going to make a sale for 250 units for estates
you 150 units
times thirteen dollars
in 67 cents means that is their unit costs in our average it costs
and that's going to give us an amount which is
and seventeen dollars which is the cost of goods sold
for that sail and finally
now that we've sold 250 units and we had three hundred units
we're gonna have 50 units 50 units laps
at an average cost %uh thirteen dollars
and sixty 7 cents so what what is back going to be written
koresh take 50 times 13 hours in 67
which is 600 and eighty
three dollars digestible this roundup to 684
and we make a purchase up 300 units
at at twenty dollars
which is going to be six thousand dollars near inventorying
and our total
total inventory word is now six thousand
any four dollars and we have 350 units
so what this and the number rates here
is going to be this is going to be R&D
inventory
because that's all we have left and that is
be you value out 350 units that we are for me
and of course to get our cost of goods sold me just look at
the it costs or the expense I've sewing
that 250 units on January the 15
and we look at the expense for the inventory we sold
on it January the we add those up
and are 3600 was 3,217
is going to be 7,000
and was at seventeen dollars yes
and that will be are our cost of goods sold so
access points here restate array to rehear scenes
got so much going on so cost a good soldier any cause a good sold
is going to be seven thousand and seventeen dollars while or any member
injury
is going to be six thousand 600
an 80 or so there you go you done it you create the moving average for the
perpetual system
remember that you always do this moving average with the average cost method
using the perpetual system and not for the periodic system so
we're done now for the merchandise inventory I series and we can buy we
started talking about receivables in the next it or else I'll see you guys in the
next one. Thanks for visit..
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