Class 10_25 & 26_10 - Ch 6_1

Class 10_25 & 26_10 - Ch 6_1 - Agenda Questions?...

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Page 1 Questions? Quiz this week (maybe two) Will be due Tuesday night at midnight Agenda
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Page 2 Inflationary period Cost of Goods Sold lower using FIFO than LIFO Net income higher using FIFO than LIFO Ending inventory higher using FIFO than LIFO Deflationary period Cost of Goods Sold higher using FIFO than LIFO Net income lower using FIFO than LIFO Ending inventory lower using FIFO than LIFO Finishing up Inventory
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Page 3 Inventory is valued at Lower of Cost or Market Conservative approach Write-down inventory as adjustment to COGS in the period that market value drops below cost – not in the period the inventory is sold Write-up of inventory is not allowed Periodic vs. Perpetual Inventory Systems Periodic Inventory is measured only periodically; at the end of the period Not too common anymore Perpetual Inventory is measured continually Ending inventory and cost of goods sold known at any point in time Finishing up Inventory
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Page 4 On December 1 st , Tahoe Thunder Inc.’s accounts receivable has a balance of $260,000.
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Class 10_25 & 26_10 - Ch 6_1 - Agenda Questions?...

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