 on the tab to the right and reports and I'm just going to type in inventory again so inventory and this look this time let's look at the inventory valuation detail report changing the range up top from 010122 tab 123122 tab and run it so this one shows us activity now so now we're not really just at a point in time we're still looking at something that's that's tight that's coming from the balance sheet account of inventory but we've added a time factor because we want to see the detail that's increasing and decreasing the inventory items themselves so if I go into the first one we're under designs we've got the pump we've got the inventory quantity adjustments so that's what they put that's how they use to start the inventory to put the beginning balance in place in the practice file and then you've got the checks that were used to purchase the inventory so note what you have up top you've got the quantity and then you've got the rate that they were purchased at notice what we're using is a FIFO cost flow method as opposed to a weighted average method or a LIFO method FIFO and weighted average are probably the most common kind of inventory flow assumptions and the flow assumptions become important because if you have a bunch of things that are the same then the price of them is usually going to go up over time all else equal due to inflation and so then the question is well how are you going to determine the cost of the thing that you sold if you just picked a pump and they're all the same but they cost different amounts due to perhaps inflation for example well we have to use a flow assumption FIFO and weighted average of our common flow assumptions so we have the FIFO amount here then and then the quantity on hand started at the 16 and the asset value so then we purchased more of them we purchased three of them the rates stayed the same so we don't have like a different level they're all still $10 because we didn't have that problem of the price changing over time so we don't really have a real problem with the assumption method until the price changes but just to give an idea of it now you've got the FIFO cost is going to be 30 which is 10 times 3 and then the quantity on hand is now 16 plus the 3 which is now on 19 and then the asset value out 190 which is the 160 plus the 30 and so on so then we had a bill which is another purchase increasing they still cost $10 FIFO cost is is 80 which is 10 times 8 the quantity on hand now went up by 8 from 19 to 27 and then here we have an invoice that means it went down we sold one of them they cost $10 we don't have a problem with having different cost amounts if there was an issue where we paid more for example we would use the we would have to use the first end first out the older cost kind of assumption would be the idea and now the the FIFO cost would be 10 in that case that's how they're determining under a perpetual inventory system the cost of the inventory item and then and then you got the quantity on hand went down from 27 by 1 and so on so you can kind of see how your your flow assumptions work by by going into this report and looking at the activity of the increases and the decreases to your inventory accounts it becomes most interesting when you have a situation like this where the cost changed over time or like this one so notice this one we had $10 units and then we bought 25 more and the cost went up significantly and then when we sold them we sold them for the $10 because we sold the older ones the older ones which are usually the cheaper ones if there's if there's if it's an inflation thing that's increasing the price over time so once we eat once we eat into or sell all the older ones then we'll sell the newer ones which are like the more expensive ones even though they're the same type of units so there is the inventory flow assumptions let's go back