© Jerry Belch

Overview of Project The objective here is to for the Marketing/Sales Department to determine the quantity of each item in the product line to be included in the beginning inventory and to create an inventory control program utilizing a spreadsheet. so perpetual inventory system is in place. Students should have completed the Sales Catalog Lesson to determine the product line, descriptions and pricing before beginning this lesson In this lesson we will determine how many of each item to buy and determine the beginning inventory for our company. . For purposes of this simulation, we are going to use the product line found in the Web Page Assignment. Products Page Print these pages for use in the lesson The spreadsheet used in this lesson is located at Beginning Inventory Calculation Template Print out this spreadsheet to be used in this lesson. In the second week we will make a spreadsheet template to keep track of our inventory In this lesson our inventory included 24 items. The more items the longer it will take Inventory Spreadsheet Program

Tutorial Print out the pages mentioned above so we can see the items in our product line: board shorts, men's and women's, sandals, men's and women's, T-shirts and hoodies. We only have a short period of time for the first week's assignment since the beginning inventory number needs to go to Accounting as part of the business plan and business loan applications. We are going to determine quantity to purchase of each of item in our product line The total of all these items at cost will determine our beginning inventory calculation for business loan and business plan. This beginning inventory part of this assignment should take about 5 hours to complete and the inventory template should take about 5 hours as well. If you have more than 24 items the assignment will take a little longer based on number of items in your product line Our Accounting Department needs a number for beginning inventory. This number appears on the balance sheet in the business plan and is also needed in the business loan. Every merchandising business has available for sale during an accounting period the merchandise on hand at the beginning of the period plus the merchandise purchased during the period. If all these goods were sold during the period, there would be no ending inventory, and cost of goods sold would be equal to the cost of goods available for sale Cost of goods sold is then equal to the cost of goods available for sale minus the ending inventory If we are a new business just starting out, the cost of goods sold number is our beginning inventory number The Acccounting Department calculates the amount by multiplying the breakeven point + additional sales to cover open house times the cost of goods sold percentage for these types of products The amount of cost of goods sold for our product line is 55.27% . 250,000 (Break even point) + 50,000 (additional sales needed for open house and profit) = $300,000 $300,000 Times .5527 = $165,810 The Marketing Department needs to use this number, to determine how many Hang-Ten, Blue T-shirts size small medium, large, Xl and XXL to order. Perpetual Inventory Spreadsheet Template We are also going to create a spreasheet template to keep track of our inventory When completed we will enter all sales and purchses of items into the template. With this perpetual inventory system in place we will now know the value of the ending inventory at all times. This system makes for much more accurate financial statements

. Materials to Collect Sales and Marketing Curriculum Printout the Workflows for Sales and Marketing,Workflows, catalog,product development Workflows Print out Cathy's Department Template From Janet's Web Site Helpful Forms-Forms, Templates and Letters Printout VE Progress Logs from Janet's Web Site Helpful Forms-Forms, Templates and Letters Teacher's Responsibility Fill out the Department Template for the Marketing/Sales department. -What do you want them to accomplish each week. These Department Templates appear on the right-hand side of your screen if you choose to use these plans. Make a copy of the Department Template for the department manager and give the Department Templates to the CEO. CEO gives out Department Template to each Marketing Department head. Department head gives out Progress Logs to each employee and from the Department template assigns each employee the tasks for the week. Employee accomplishes the work assigned and fills in information on the Progress Log. Completed Progress Logs for each employee are given to the department VP at end of week. Department heads turn progress logs over to CEO. CEO turns over progress logs to teacher. Set up a filing cabinet drawer for these materials, so you won't have to go through this process next year. Evaluate each week's assignment to see if it is completed. You may need to adjust the amount of time for each week's assignment.