Class 4 Inventory and Cost of Goods Sold

Class 4 Inventory and Cost of Goods Sold - Inventory and...

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Inventory and Cost of Goods Sold
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Overview Definition of Inventory Types of Inventory Inventory Acquisition/Production Costs Inventory Systems Periodic Perpetual Inventory Valuation Methods Specific Identification Average Cost FIFO LIFO Declines in Inventory Value--LCM 2
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Inventory Includes: Goods held for sale in the normal course of business . Goods in production. Raw materials used in the production of goods. Retailer Merchandise Inventory Manufacturer Raw Materials Direct Materials Indirect Materials Work in Progress Finished Goods 3
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Goods Available for Sale The Inventory Cycle 4 Acquisition/Production Costs Beginning Inventory Cost of Goods Sold Ending Inventory Inventory Systems Valuation Method LCM
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Inventory Acquisition/Production Costs Purchased Inventory Purchase Price Freight Receiving Storage Preparation Costs Cash Discounts—Gross or Net Method Gross method—any discount lost is included in inventory value.
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