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A Pen Costs 35 Cents Form

A Pen Costs 35 Cents Form

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okay this is our second mini lecture on chapter 7 and now we're going to be talking about computing costs using for inventory costing methods when we were covering this in the last video page 2 of our notes the reason it was easy to calculate the cost of goods sold is because the inventory cost what we paid for it remained constant at $10 but what if that's not the case what if for example you sell pants and you begin by buying these pens at ten cents apiece perhaps at Sam's Club and then you find that those pens are on sale at Viking office supplies for only eight cents so you buy a bunch of boxes and the boxes look the same as the boxes that you pay ten cents for you just pay less for them it's got the same UPC code on it and then you find another supplier quill office products and they want your business so they're willing to sell them to you for five cents apiece so you buy even more boxes when you sell a pen how do you know whether it's the pen that you paid ten cents for or eight

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