Chapter 5 - Announcements FRP#2 due the week of 3/29 in lab...

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Announcements FRP #2 due the week of 3/29 in lab!  See  Spark for the form.  Hard copies up front. Chapter 5 Lab quiz due the week of 3/22 in  lab! Hard copy in lab or get on Spark. Owl quiz 4 and chapter 5 grade freeze on  11 th .  (remember OWL quizzes are usually  only up 3 days before they are due.  4 will be  up on the 6 th  and due the 11 th ).
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Inventory Cost Flow Methods Four  Common  Inventory  Cost Flow  Methods Specific  Identification First-in, First- Out (FIFO) Last-in, First- Out (LIFO) Weighted  Average
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Inventory Cost Flow Methods These four inventory costing methods  are used to assign the total dollar  amount of goods available for sale  between ending inventory and cost of  goods sold. Ending inventory or CGS??
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The cost of the  oldest   inventory items  are charged to cost of goods sold when  goods are sold.   The cost of the   newest   inventory items  remain in ending inventory. The actual physical flow of inventory  items may differ from the FIFO cost flow  assumptions. First-In, First-Out
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The cost of the  newest   inventory items  are charged to cost of goods sold when  goods are sold.   The cost of the  oldest  inventory items  remain in ending inventory. The actual physical flow of inventory  items may differ from the LIFO cost flow  assumptions. Last-In, First-Out
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Weighted-Average Take the average cost of all goods  available for sale to value both CGS and  Ending Inventory. BE SURE IT’S WEIGHTED!
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Specific   Identification Specific cost of each inventory item  is known.  Used with small volume, high dollar  inventory.
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PRS If material prices are increasing and a company  wants to show the highest net income which  method should be chosen? A. FIFO B. LIFO C. Specific Identification D. Weighted Average
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Example Date Event Units Price Total 3/1 Beg. Inv.       10 $   6 $  60 3/10 Purchase     12      7     84 3/15 Purchase     11      8     88 3/27 Sale     18    15   270
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FIFO Cost of Goods Sold: From Units Price Cost Ending Inventory: From Units Price Cost
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Cost of Goods Sold: From Units Price
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