1 2 3 4 Beginning Inventory Purchase Cash Sale Purchase Cash Sale Purchase Cash Sale 100 Pairs @ $10 each 100 pairs @ $20 each 150 pairs @ $100 each 200 pairs @ $20 each 150 pairs @ $50 each 300 pairs @ $25 each 200 pairs @ $100 each 5 6 7 GROSS PROFIT FIFO LIFO WA Sales Less Cogs Gross Profit JOURNAL ACCOUNTS WA DEBIT FIFO DEBIT WA CREDIT FIFO CREDIT LIFO DEBIT LIFO CREDIT INVENTORY FLOW CHART FIFO: DATE PURCHASES (JE I) COST OF GOODS SOLD ENDING BALANCE (JE III) QT UNIT TOTAL UNIT TOTAL COST COST QT TOTAL UNIT COST QT BEG. INV DATE INVENTORY FLOW CHART LIFO: PURCHASES (JE I) COST OF GOODS SOLD ENDING BALANCE (JE III) UNIT TOTAL QT UNIT TOTAL QT UNIT TOTAL COST COST COST QT BEG. INV DATE INVENTORY FLOW CHART WA: PURCHASES (JE I) COST OF GOODS SOLD ENDING BALANCE (JE III) QT UNIT TOTAL QT UNIT TOTAL QT UNIT TOTAL COST COST COST BEG. INV T-ACCOUNTS-MASTER SALES COGS FIFO COGS LIFO DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT COGS WA DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT