1. Classification of inventories: Raw materials, work-in-process, finished goods 2. Goods in transit: Free on board (FOB) shipping point, FOB … More

Goods in Transit Entity A sold $25,000 merchandise to Entity B with the terms of FOB destination on December 22, … More

Inventory Recording Systems Periodic inventory system Perpetual inventory system © AccountingInfo.com

Cost Flow Assumptions First-in, First-out (FIFO) method Last-in, First-out (LIFO) method Weighted average method First-in, First-out (FIFO) method Old purchases … More

Lower of Cost or Market (LCM) 1. At the end of each period, inventory is measured at the lower of … More

Inventory Turnover Ratios 1. Inventory turnover ratio = Cost of goods sold / Average inventory 2. Days in inventory = … More