Class 9 Before-Class Slides -0925 Inventory Measurement.pdf...

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InventoryMeasurementZach Zhiguang Wang
AgendaPeriodic vs Perpetual SystemCost Flow AssumptionsSpecific Identification MethodLIFO, FIFO and Average Cost LIFO ReserveLIFO LiquidationDollar-Value LIFOQuiz 2
Perpetual and Periodic SystemsPerpetualPeriodic Difference
Cost Flow AssumptionsSpecific Identification MethodFIFOLIFOAverage Cost
Various Inventory Costing MethodBeginning 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 units01/18, Buy 6,000 units at $10 each01/20, 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 ReserveDefinitionHow much the LIFO valuation of inventory differs from the FIFO valuation of inventoryCalculationLIFO Reserve

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