In this presentation we will discuss the weighted average inventory method using a periodic system. The weighted average method as opposed to a first in first out or last In First Out method, the periodic system as opposed to a perpetual system. We want to keep the other systems in mind as we work through this comparing and contrasting. We’re going to be working with this worksheet entering this information here. It’s important to note that this worksheet is a worksheet that can typically be used with any of these inventory flow type problems of which there are many. We have first out last in first out the average method. And then we have a perpetual and periodic system which can be used with any of those methods. It’s also possible for questions to ask for just one component such as cost of goods sold or Indian inventory, and therefore it can seem like there’s more types of problems that we can have in that format as well. If we set up everything in a standard way, even if that weighs a little bit longer for some types of problems, it may be easier because we can just memorize that one format to set things up, this would be a format to do that.
