Periodic Inventory Valuation Methods
MJC Revised 12/2010 Page 1
Inventory-listing chart in the order items were purchased during the year.
Purchase DatesNumber of unitsCost perunitTotalextended cost
Beginning inventory(oldest material)
20 7 140
First purchase of the year
40 8 320
30 9 270
20 10 200
Fourth purchase(Newest Material)
30 11 330
Units Available for sale and Goods Available for Sale(Total of all purchases plus beginning inventory)
140 X $1,260
Less: Units Sold
Units in ending inventory
How to Create Chart 1- the Inventory-Listing Chart1.
Create the chart of items, which will display in order from oldest to newest the beginninginventory and all of the items in inventory that were purchased during the year. Start withthe beginning inventory, which is any item(s) left in stock at the end of the prior year.Then list in order of purchase date items of inventory purchased during the year. You willstart the chart with the four columns which will be labeled as follows:
(a)Purchase Dates(b)Numberof units(c)Cost perunit(d)Totalextended cost(b) X (c) = (d)
Fill in the information of how many purchases, the number of units per purchase, the costper unit for each purchase. Multiply across the number of units times the cost per unit toget the total extended cost.3.
Total down the columns for number of units and total extended cost. This will give youtotal units and goods available for sale. There is no need to total column (c) Cost per unitbecause it provides no useful information.4.
Subtract the total units sold for the total units available for sell in column (b) Number of units to get the number of units in ending inventory.
*Note: This chart is used in calculating the cost of ending inventory and cost of goods sold under all three-inventory valuation methods.