Perpetual Versus Periodic Inventory: Example 

Hey Professor Farhat, I am having trouble with the terminology when it comes to finding COGS to find the "squeeze" for Ending Inventory. I keep messing up with the terminology such as "Average markup on cost", "Gross Profit on Sales", "Normal PM on Sales". For example, it gave me "Gross Profit on % of sales is 40%" and I calculated my COGS by doing sales x 40% when the correct way was sales x (1-40%). Another instance where I messed up was they gave me "Average markup on cost" and did 1-25% and the correct way was to do 1.25. Do you have any advice to improve at this? The base formula I have been using is Beg inv. + Purchases = COGAS - End Inv = COGS or if the problem gives me COGS and I need to find EI I would do Beg Inv. + Purchases = COGAS - COGS = End Inv.Thank you!

Hey the purchase discount is 17700 and COGS is 527300

Thanks

Sir, so in both method always same GP?

Jalol was here as well!

ending inventory has to be 165,00

I hate this chapter... This is so boring! UGH! Learning about inventory is the most boring thing in accounting... do you agree with, Professor Farhat? 😭