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Dear sir,
can you explain dt income statement opening inventory
dt closing inventory income statement?I have been always confusing these transactions, because i can’t understand where it comes from 🙁
I am not sure what you are asking – what is ‘dt’?
Have you watched my lecture on inventory, because the first part of the lecture is going through the double entries for inventory at the end of the period.
The abbreviation for debit is dr (not dt) 🙂
You must watch my lecture on inventory to see the double entries.
Tutor, what is main aspect of continous avarage method?
i think we determine unit value every time of sale? right?
IT’S MY FINAL QUESTION ON INVENTORY. PLEASE HELP
January purchase 10 items 198
Sales 10 items 30
Purchase 20 24.5
Sales 5 30
Opening inventory 1 jan was 6 items valued at 5 each / gross profit using continous method will be.Is the 198 the total cost of the 10 items?
If it is, then what is the 24.5 two lines further down?And is 30 the selling price per item?
on 1 jan, 6 items, total cost $30
Buy 10 items, total cost $198
So now have 16 units; total cost $228
Sell 10 units: cost = 10/16 x $228 = $142.50
6 units are left; total cost is 6/16 x $228 = $85.50
Buy 20 units; total cost $490
Now have 26 units; total cost $575.50
Sell 5 units: cost = 5/26 x $575.50 = $110.67
So total cost of sales – 142.5 + 110.67 = $253.17
Total revenue = 15 x 30 = $450Gross profit is the difference 🙂
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