Class 10 Before-Class Slides -0928 Inventory...

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Inventory Measurement Zach Zhiguang Wang
Agenda Assignment of Case Study 1 Periodic vs Perpetual System Cost Flow Assumptions LIFO, FIFO and Average Cost LIFO Reserve Dollar-Value LIFO
Perpetual and Periodic Systems Perpetual Periodic Difference
Various Inventory Costing Method Beginning Balance 6,000 units at $8 each 01/05, Sell 3,000 units 01/10, Buy 5,000 units at $9 each 01/12, Sell 2,000 units 01/18, Buy 6,000 units at $10 each 01/20, Sell 4,000 units Calculate January’s ending inventory and cost of goods sold under (1) perpetual FIFO (2) periodic FIFO (3) perpetual LIFO (4) periodic LIFO (5) perpetual average cost (6) periodic average cost
LIFO Reserve Definition How much the LIFO valuation of inventory differs from the FIFO valuation of inventory Calculation Relation to COGS

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