Chapter-7BarryBus21

Effects advantages of methods advantages of methods

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Unformatted text preview: s Advantages of Methods Advantages of Methods Weighted Average First-In, First-Out Last-In, First-Out 18 19 20 21 22 23 24 25 26 27 Comparison to Benchmarks 28 29 FIFO (First-in, First-Out) 30 LIFO (Last-in, First-Out) 31 Weighted Average Cost $310 ÷ 40 units = $7.75 per unit 32 Financial Statement Effects Summary of Perpetual Inventory System Cost Summary Flow Assumptions on Financial Statements Flow 33 34 35 36 Recording Inventory Transactions in a Periodic System Periodic Inventory System Perpetual Inventory System 37 38 39 Summary Describe Types of Inventory & management Understand reporting inventory & CGS in FS Compute cost using, FIFO, LIFO & WA methods Value using LCM and understand other costs & Value discounts discounts Compute and explain Inventory turn over & Compute Days to sell ratios Days Understand perpetual vs. periodic systems 40...
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