 is going to be the the the the the decrease 330357 ending inventory was at 4625 minus the 330357 gets us the 132141 the ending balance at this point in time represents the ending balance in each of these products and then the change is the journal entry we need to make to get to get our ending balance and our financial statements down to the current ending balance according to our calculations here so that's going to be the journal entry number so if i look at my financials we should be at 5249 now so if i go to my financials we're at 5249 we're going to bring it down to the 184943 by decreasing inventory 339957 assuming we sold that and recorded the other side to the expense account of cost of goods sold on a a a cruel that's an accrual concept right so now we're doing the accrual thing with a journal entry not the cashed based thing and so we're going to go back on over here and just make a journal entry there it is journal entry as of the end of the month 531 531 and we're going to say this is going to be cost of the goods that are sold cost of the goods and the amount being what did i say again do you remember i forgot again 3399.57 that's about the maximum memory 33 but there's two double digits 339957 3399.57 because if you memorize like 3399 then those are like one digit memory so i can remember seven double digit numbers instead of so i should be able to remember more than seven digit whatever inventory decreasing 339957 all right that's it recording the expense other side decreasing the inventory let's save it let's close it let's run it the balance sheet that is that's what we're running and check it out so if i go on to the balance sheet inventory going down as of the end of may to the 184947 does that tie out to what we have here 184943 we're off by some by a bit here some pennies no no 1849184943 no you're just doing some stupid you can't you're the numbers changed when i looked at them that it's not that the numbers changed or something i don't know but now it's correct so then we'll run it this one and then then down here we've got the cost of the goods sold at and notice i put this one into cost of labor again that's not correct let's just change that let's change that that probably bother people people are going to be upset on that one so i'll fix it now they're still going to be accept they're still going to be upset but this will at least we'll fix it we'll fix it okay okay let's do that so then now we've got the cost of goods sold here okay so there it is and then we record the cost of goods sold so the bottom line is the income is going up separate from the inventory tracking we're not doing it on a perpetual system we're basically using whatever system we talked about in prior presentations to pull the information on the income side of things and now we're using the weighted average method to get a proper cost of goods sold as best we can on a periodic system so that we can basically look at our financial statements in this case on a monthly basis at the end of the month and get some numbers that are going to hopefully help us for better decision making purposes into the future and as you track your information over here on your worksheet and what not as well you can also of course get a better idea possibly of your profit margins and what not on a on a product by product basis so you can then determine you know which products are not just selling best but also which products are most profitable when you take into consideration you know the profit margin and whatnot i mean obviously here if you've got a product over here that you know costs a lot more and whatnot you would think that maybe the profit margins might be better on the you know if you could sell so so so so the more data could help with those types of calculations so in any case the two major flow assumptions that we can we can use will generally be the first in first out which we took a look at in a prior presentation and then a weighted average type of flow assumption we took a look at this time now just for the fun of it let's take a look at because i did this one in 2023 and the last one in 2024 i believe let's change our report to total only and then i'm going to go to uh the the periods and i wanted to select the uh previous year previous year and then i'll do the change here so i can compare actually wait a sec let me do it this way i've got to change the date up to 2024 2024 that's when we did the FIFO and then i'll do the previous year change in dollar change in percent and run it and so so now we've got uh uh april and may 2024 and then april and may 2023 and if we go down to the cost of goods sold you could see the cost to goods sold is not exact right because we use i i believe uh in the prior presentations we did the same uh the same flows sales and purchases using a first in first out method and here we used you know a weighted average method so you can get into the details of which is going to be more advantageous if you have a period of of increasing prices such as we had here with the uh with inflation which is typically the case meaning the cost of the inventory is going up and your flow assumptions will then have an impact on uh your cost to goods sold and and the general idea would be if you if you use the first in first out kind of flow assumption then that would mean that you would be selling the items that are cheaper right and your balance sheet would be holding on to the inventory that you bought purchase latest which usually would be the most expensive if you're in an inflationary or increasing price type of system so you would think that the first in first out system will result in a bigger number in the uh ending inventory and then the ones that you sold would be a smaller number in you know the cost of goods sold because you're selling the items that in essence are cheaper right would be the general idea and then the weighted average is kind of taking the middle one and then you've got first the last in first out which would be the opposite of first in first out which no one really uses generally for practical purposes because it doesn't really make sense from a flow assumption but you know it could it could make sense from a tax a tax standpoint so in the case those are the that's the general idea