Comparison of FIFO, LIFO, and average costing method. Understanding how a change in inventory costing method can effect the financial statements of the company.
Inventory costing methods exercises
Understanding how FIFO net operating income differs from LIFO net operating income.
The Alpha merchandising company purchases product DX-5 directly from manufacturers and sell it to small retailers as well as customers. The following transactions ……
The Breeze trading company discloses the following information for the month of August 2013. Aug. 01 Beginning inventory: 600 units @ $5 each Aug. ……
The Pharma company is a single product company. The company presents the following information regarding its activities during the month of December 2013. Dec. ……
Understanding the use of gross method of recording purchases under both periodic and perpetual inventory methods.
Journal entries to record purchases using net of discount method (or net method).
The use of dollar-value LIFO method to compute the value of ending inventory.
Computation of ending inventory and cost of goods sold (COGS) using FIFO, LIFO and average cost method in a periodic inventory system.
Making journal entries under perpetual and periodic inventory method.
Reporting inventories and preparation of current assets section by a manufacturing company.