W6_Outline - How do you calculate cost of goods sold c Describe the LIFO method How do you calculate ending inventory How do you calculate cost of

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Accounting 306 Intermediate Accounting I Workshop 6 Outline I. Name the inventory account(s) used by a merchandising company and a manufacturing company. II. Inventory systems a. Compare and contrast the perpetual and periodic inventory systems. b. How do journal entries for the systems differ? III. Physical goods to be included in inventory a. Goods in transit i. When does title pass when goods are shipped FOB shipping point? ii. When does title pass when goods are shipped FOB destination? b. Consigned goods i. Describe generally the nature of a consignment arrangement. ii. Which party owns the goods out on consignment?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
IV. Describe the following methods of accounting for purchase discounts. a. Gross method b. Net method V. Cost flow assumptions a. Describe “specific identification.” Why do we use cost flow assumptions (i.e., why doesn’t specific identification always work)? b. Describe the FIFO method. How do you calculate ending inventory?
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: How do you calculate cost of goods sold? c. Describe the LIFO method. How do you calculate ending inventory? How do you calculate cost of goods sold? d. Describe the average cost/weighted-average method. How do you calculate the average cost per unit? How do you calculate ending inventory? How do you calculate cost of goods sold? e. How are the cost flow assumptions applied differently under the periodic versus perpetual systems? f. How does choice of cost flow assumption affect the financial statements (e.g., income statement, balance sheet) and taxes? VI. LIFO issues a. Define LIFO reserve. Define LIFO effect. b. What is LIFO liquidation? Why is it a problem? c. Dollar-value LIFO i. How is its focus different from “regular LIFO?” ii. Describe or show how to apply dollar-value LIFO. iii. How do you compute a price index?...
View Full Document

This note was uploaded on 03/01/2010 for the course ACCT 30602E taught by Professor Darland during the Fall '09 term at Buena Vista.

Page1 / 3

W6_Outline - How do you calculate cost of goods sold c Describe the LIFO method How do you calculate ending inventory How do you calculate cost of

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online