Perpetual fifo

PERPETUAL FIFO

Adora Aline AlfianaVocational High School

surAKARTA

What is Perpetual .. ?

System of inventory control which is continuously records all of the

change of inventory.

Advantages using Perpetual :

• Continuous determination of inventory value

• Continuous determination of gross profit

• Companies can know the quantity and price

of their inventories, every time

PERPETUAL

Inventory Method

FIFO (First In First Out)LIFO (Last In First Out)

AVERAGE

FIFO Method

The FIRST inventories bought are the FIRST ones to be sold, and

inventories which bought later are sold

later.

The Form Of Inventory Card

DATE

DOC. NUMBER

DESCRIPTION

INUNIT PRICE TOTAL

OUTUNIT PRICE TOTAL

BALANCEUNIT PRICE TOTAL

Company’s NameINVENTORY CARDAccounting Period

Item Name : Page :

ABC Company has records as follow :1st January 2012 : Beginning Balance of HP-1 is

30 unit at $10 each.3rd January 2012 : There is a purchase of HP-1

from Jay Company, 50 unit at $20 each.4th January 2012 : There is a sales from Gold

company, 40 unit at $22 each.

Examples :

Let’s Record

DATE DOC. NUMBER DESCRIPTION

IN OUT BALANCE

UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL

ABC CompanyINVENTORY CARD

January, 2012

Item Name : HP-1 Page : 1

2012Jan

1 Op. Balance 30 $10 $300

1st Jan : Opening Balance, 30 unit @$103 Jay Comp. 50 $20 $1000 30 $10 $30050 $20 $1000

4 Gold Comp. 30 $10 $300 --10 $20 $200 40 $20 $800

3rd Jan : Purchase, 50 unit @$20

4th Jan : Sales, 40 unit @$22

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