Chapter_8_Valuation_Of_Inventories_A_Cost_Basis Approach_Summary_By_Objective

Chapter_8_Valuation_Of_Inventories_A_Cost_Basis Approach_Summary_By_Objective

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Chapter 8: Valuation of Inventories: A Cost-Basis Approach Summary by Study Objective Objective 1: Identify major classifications of inventory. State the type of inventory accounts that would be found on a merchandiser’s balance sheet and a manufacturer’s balance sheet. Objective 2: Distinguish between perpetual and periodic inventory systems. Describe the features of a perpetual inventory system. Describe the features of a periodic inventory system. How is “inventory shrinkage” accounted for under perpetual and periodic systems? When does title pass for goods shipped FOB shipping point? When does title pass for goods shipped FOB destination? On whose books should consigned inventory be carried? Objective 3: Identify the effects of inventory errors on the financial statements. How does an inventory error counterbalance? What effect does an overstatement of ending inventory have on cost of goods sold?
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This note was uploaded on 02/12/2012 for the course ACCT 3001 taught by Professor Moffitt during the Spring '08 term at LSU.

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Chapter_8_Valuation_Of_Inventories_A_Cost_Basis Approach_Summary_By_Objective

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