Accounting Notes Ch.9

Accounting Notes Ch.9 - 1. Average cost flow assumption 2....

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Accounting Notes /*Chapter9*/ Identify costs that should be included in inventory - The cost of an inventory item includes all expenditures incurred to bring the item to its existing condition and location. - Inventory for a merchandising firm consists of all goods owned and held for sale in the normal course of business. Journalize entries to account for inventory transactions under the periodic and perpetual inventory systems. - Periodic Inventory Beginning Inventory + Purchases (net) = Cost of Goods Available for Sale - Ending Inventory = Cost of Goods Sold - Perpetual Inventory system Continually updates the Merchandise Inventory account.
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Unformatted text preview: 1. Average cost flow assumption 2. First-in, First-out (FIFO) 3. Last-in, First-out (LIFO) Compute the cost of ending inventory and the cost of goods sold using the specific identification, weighted average cost, FIFO, and LIFO methods under the periodic inventory system.-Specific identification Method- requires that we assign e ach inventory ite m a specific n a m e or nu m b er a nd cost.-Weight ed av erag e inventory costing- values all units at the s a m e weight ed averag e c co mput ed at the end of e ach p eriod-FIFO First in, last out-LIFO Last in, first out...
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This note was uploaded on 04/07/2008 for the course ACCT 131 taught by Professor Dickkochanek during the Spring '08 term at UConn.

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