This preview shows page 1. Sign up to view the full content.
Unformatted text preview: -2 steps of taking inventory: physical count and determining ownership-FOB Shipping Point: ownership passes to buyer when seller loads truck-FOB Destination: ownership passes to buyer when goods are received-During inflation, FIFO reports highest net income and LIFO lowest-opposite during recession-An error in the ending inventory of the current period will have a reverse effect on the net income of the next period-COGS/Average inventory= Inventory turnover-Days in Inventory=365/Inventory turnover-Perpetual:-FIFO: COGS prior to sale, same with LIFO-Average cost (moving average method)-new average after each purchase...
View Full Document
This note was uploaded on 11/15/2011 for the course ACCT 272 taught by Professor Mensah during the Fall '08 term at Rutgers.
- Fall '08
- Financial Accounting