Inventory & Merchandising Transactions-Excel Practice Proble
Merchandising transaction - bookkeeping including purchase and sale of inventory, discounts, and returns. FIFO, LIFO,
What you will learn
First In First Out (FIFO) cost flow method
Last In First Out (LIFO) cost flow method
Weighted average cost flow method
Periodic inventory method
Perpetual inventory method
Record purchase of merchandise
Record the sale of merchandise
Perpetual and periodic inventory systems
Sales discount and purchase discount
Inventory shrinkage and sales returns
Financial statements for a merchandising company
This course will only provide the Excel practice problems component of our resources, so that learners can review practice problems without being distracted by other resources.
Bookkeeping for inventory and merchandising transactions.
We cover merchandising transactions and cost flow assumptions.
Merchandising transaction, those transaction that deal with inventory, including the purchase of inventory and the sale of inventory. We will discuss related topics including sales discounts, purchase discounts, sales return and allowances, shrinkage and the cost of goods sold calculation. We will also compare and contrast a perpetual inventory system and periodic inventory system, listing and describing the pros and cons of each, explaining when each may be most appropriate in practice.
Inventory costs and cost flows, including what is included in the cost of inventory and how to account for inventory freight costs, inventory insurance costs, and discount. We also discuss inventory flow assumptions including specific identification, first in first out (FIFO), last in first out (LIFO), and weighted average methods. FIFO, LIFO and weighted average methods will be discussed using both a periodic inventory system and a perpetual inventory system.
Who will we be learning from?
You will be learning from somebody who has technical experience in accounting concepts and in accounting software like QuickBooks, as well as experience teaching and putting together curriculum.
You will be learning from somebody who is a:
• CPA – Certified Public Accountant
• CGMA – Chartered Global Management Accountant
• Master of Science in Taxation
• CPS – Certifies Post-Secondary Instructor
• Curriculum Development Export
As a practicing CPA the instructor has worked with many technical accounting issues and helped work through them and discuss them with clients of all levels.
As a CPS and professor, the instructor has taught many accounting classes and worked with many students in the fields of accounting, business, and business applications.
The instructor also has a lot of experience designing courses and learning how students learn best and how to help students achieve their objectives. Experience designing technical courses has also benefit in being able to design a course in a logical fashion and deal with problems related to technical topics and the use of software like QuickBooks Pro.
Summary of what will be covered:
Purchase of merchandise or inventory
Sale of merchandise or inventory
Perpetual and Periodic Inventory System
We will compare and contrast the perpetual and periodic inventory systems.
Sales Discount & Purchase Discount
It is easy to get the sales discount and purchase discount confused and mixed up. We will discuss both transactions and how to record them.
Inventory Shrinkage & Sales Returns.
Inventory Shrinkage has do do will loss of inventory, the problem being how to know it is lost and how to record the loss. Sales return are when inventory is returned after a sale. We will record transactions related to sales returns.
Financial Statements - Merchandising Company
Financial statements, especially the income statement, are typically more complex for merchandising companies then service companies.
We will have to comprehensive problems, on focused on financial transactions, more of a mid sized problem. The second comprehensive problem will cover the full accounting cycle for a merchandising company, the recording of financial transaction, adjusting entries, financial statements, and closing process.
Inventory Tracking methods
Specific identification method
First in first out (FIFO) method
Last in first out (LIFO) method
Weighted average method
Periodic system verses a perpetual system.
We discuss FIFO, LIFO, and weighted average under each system.