Inventory and Cost of Goods Sold. Study Notes

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AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO: ▪ LO1 Trace the flow of inventory costs from manufacturing companies to merchandising companies. ▪ LO2 Calculate cost of goods sold. ▪ LO3... Determine the cost of goods sold and ending inventory using different inventory cost methods. ▪ LO4 Explain the financial statement effects and tax effects of inventory cost flow assumptions. ▪ LO5 Explain the differences between a perpetual inventory system and a periodic inventory system. ▪ LO6 Prepare a multiple-step income statement. ▪ LO7 Apply the lower-of-cost-or-market rule for inventories. ▪ LO8 Analyze management of inventory using the inventory turnover ratio and gross profit ratio. Appendices: LP 1 ▪ LO9 Calculate inventory amounts using FIFO and LIFO under a perpetual inventory system [Show More]

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