1. Classification of inventories: Raw materials, work-in-process, finished goods 2. Goods in transit: Free on board (FOB) shipping point, FOB … More
Tag: Chapter 7
Cost of Inventory
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
Inventory Recording Systems Periodic inventory system Perpetual inventory system © AccountingInfo.com
Cost Flow Assumptions
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)
Lower of Cost or Market (LCM) 1. At the end of each period, inventory is measured at the lower of … More
Inventory Analysis
Inventory Turnover Ratios 1. Inventory turnover ratio = Cost of goods sold / Average inventory 2. Days in inventory = … More