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Perpetual Inventory System Examples

This document contains sample journal entries for a perpetual inventory system and a periodic inventory system, as well as an example of calculating cost of goods sold and ending inventory using the FIFO costing method. Specifically, it provides journal entries dated from July 6 to July 21 for the perpetual and periodic inventory systems, and calculates the total cost of goods sold for sales on May 10 and May 25 using inventory purchased on May 1, 5, and 20 at different unit costs.

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Joe Nathaniel Arrieta
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95 views2 pages

Perpetual Inventory System Examples

This document contains sample journal entries for a perpetual inventory system and a periodic inventory system, as well as an example of calculating cost of goods sold and ending inventory using the FIFO costing method. Specifically, it provides journal entries dated from July 6 to July 21 for the perpetual and periodic inventory systems, and calculates the total cost of goods sold for sales on May 10 and May 25 using inventory purchased on May 1, 5, and 20 at different unit costs.

Uploaded by

Joe Nathaniel Arrieta
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Student’s Last Name 1

Problem I
Perpetual Inventory System

Date Accounts Debit Credit


July 6 Inventory 1500
Accounts Payable 1500

July 8 Accounts Payable 400


Inventory 400

July 9 Inventory 90
Cash 90

July 19 Accounts Receivable 3500


Sales 3500

Cost of Goods Sold 700


Inventory 700

July 20 Sales Return 300


Accounts Receivable 300

Inventory 90
Cost of Goods Sold 90

July 21 Cash 3136


Sales Discount 64
Accounts Receivable 3200

Accounts Payable 1100


Cash 1067
Inventory 33

Problem II
Periodic Inventory System

Date Accounts Debit Credit


July 6 Purchases 1500
Accounts Payable 1500

July 8 Accounts Payable 400


Purchase Returns and Allowances 400
Student’s Last Name 2

July 9 Freight-in 90
Cash 90

July 19 Accounts Receivable 3500


Sales 3500

July 20 Sales Return 300


Accounts Receivable 300

July 21 Cash 3136


Sales Discount 64 3200
Accounts Receivable

Accounts Payable 1100


Cash 1067
Purchase Discount 33

Problem III

Using FIFO

Total Cost of Goods Sold

May 10 Sales 400 units


From May 1 Purchases 380 units @ $15 $5,700
From May 5 Purchases 20 units @ $17 $340
May 25 Sales 400 units
From May 5 Purchases 250 units @ $17 $4,250
From May 20 Purchases 150 units @ $22 $3,300
Total Cost of Goods Sold $13,590

Cost of Ending Inventory

From May 20 Purchases

Remaining 150 units @ $22 = $3300

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