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Intermittent Purchase and Sell of Inventory (Accounting) - Explained

Examples of Intermittent Purchase and Sell

Written by Jason Gordon

Updated at April 7th, 2022

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Table of Contents

What are Intermittent Purchase and Sell? Intermittent FIFO ExampleIntermittent LIFO ExampleIntermittent Weighted Average Example

What is the Intermittent Purchase and Sell of Inventory? 

Most companies purchase inventory and then sell some of that inventory before purchasing more inventory. We refer to this as intermittent purchase and sell. 

So, what is the effect of using LIFO, FIFO, and weighted average in intermittent purchases and sells.

We want to find the cost of goods sold, the gross profit, and the ending inventory. 

We start by identifying the beginning inventory that were journalized in the previous reporting period and carried over to the beginning of this period.  

When you purchase more inventory (we debit inventory because our inventory goes up) for cash (so we credit cash, because our goes down).  

When we sell inventory, I 

  • Cash - I will debit my cash by the same amount. 
  • Sales revenue - I credit sales revenue for the price of goods x number of goods.
  • Inventory - I will credit my inventory for the value of the inventory I sold. 
  • COGS or cost of goods - I will debit COGS (an expense) for the value of the goods that I sold. 

The value for which I debit COGS will be determined by whether I used the Specific Identification, Last-In, First-Out (LIFO), First-in, First-Out (FIFO), or Weighted Average Method of Inventory Accounting. 

Back to: Accounting & Taxation

Example of Intermittent Purchase and Sell with FIFO

The below video provides an example of how to account for the Intermittent Purchase and Sell of Inventory using the FIFO Method. 

Example of Intermittent Purchase and Sell with LIFO

The below video provides an example of how to account for the Intermittent Purchase and Sell of Inventory using the LIFO Method. 

Example of Intermittent Purchase and Sell with Weighted Average Method

The below video provides an example of how to account for the Intermittent Purchase and Sell of Inventory using the Weighted Average Method. 

The below video provides an example of how to account for the Intermittent Purchase and Sell of Inventory using the LIFO Method.

Related Topics

  • Do It Right the First Time (DRIFT) Definition
  • What is Merchandise Inventory (Retail Inventory Method)? – Financial Accounting
  • What are Inventory Costs (Carrying Costs)? – Financial Accounting
    • Obsolete Inventory Definition
    • Shrinkage (Inventory) Definition
  • Specific Identification Method of Accounting for Inventory – Financial Accounting
  • First-in, First-Out Method (FIFO) – Financial Accounting
  • Last-In, First-Out Method (LIFO) – Financial Accounting
  • Weighted-Average Method of Accounting for Inventory – Financial Accounting
  • Financial Statement Effects (Inflationary vs Deflationary Periods) – Financial Accounting
  • Intermittent Purchase and Sell
  • Choosing an Accounting Method – Financial Accounting
  • Effect of Each Accounting Method on Taxes – Financial Accounting
  • Lower of Cost or Market Method of Accounting for Inventory – Financial Accounting
intermittent purchase and sell

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