Class visitation

Name:Ricardo Buayan
Class: CS4
Instructor: Anthony
Date & Time: 09/16/2008, 6:00 - 8:00 p.m
Professor: Thaddeus J. Shalek, CPA, CVA, MBA

Class Visitation Report

The topic was about Periodic and Perpetual inventories. The professor discussed and
differentiate the two system of accounting procedure in recording inventory. Under Periodic
inventory system, it keep the inventory balance at the same value that it was at the beginning
of the year. At year end, the inventory balance is adjusted to a physical count. To account for
inventory, purchases in periodic system, and account called"purchases" is used in recording
rather than by debiting 'inventory'". While Perpetual inventory system, record cost of goods
sold and keep inventory at its current balance throughout the year. Therefore, there is no
need to do a year-end inventory adjustment unless the perpetual records disagree with the
inventory count. In addition, a separate cost of goods sold calculation is unnecessary since
cost of goods sold is recorded whenever inventory is sold.

Example of periodic inventory:
unit cost is held constant to avoid the necessity of using a cost of flow assumption.

Beginning inventory 100 units @ 5 = 500.00
Purchases 900 units @ 5 = 4,500.00
Sales 600 units @ 10= 6,000.00
Ending inventory 400 units @ 5 = 2,000.00

Example of perpetual inventory:

Beginning inventory 500.00
Net purchases 4,500.00
----------
Goods available for sale 6,000.00
Ending inventory (2,000.00)
----------
Cost of Goods Sold 4,000.00

The method of teaching I think is the same with that in my country.
The only difference is that, classroom has the overhead and computer
that can be use during the class session.