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Learn the perpetual and periodic methods of recording inventory. Find out how to cost out inventory and record cost of goods sold using weighted and moving average, FIFO, LIFO and lower of cost or market (LCM). Double-quiz in each section assures that you master it.
196 pages [94 self-teaching + 102 self-quizzes with detailed answers]
Section 1: Introduction. What to include in merchandise costs, when and how to record the journal entries. How inventory is reported on the income statement as cost of goods sold and on the balance sheet as ending inventory.
Section 2: The perpetual method. How to compute and record journal entries for purchases (net or gross) . . . sales . . . purchase discounts . . . returns and allowances . . . customer sales returns . . . and inventory shrinkage.
Section 3: The periodic method. How to compute and record journal entries for purchases (net v. gross), sales, discounts, returns and allowances, sales returns, inventory shrinkage and closing out the inventory-related accounts at year end.
Section 4: Weighted average costing. How to compute ending inventory and COGS using weighted average costing (periodic method) and moving average costing (perpetual method).
Section 5: First-in, first-out (FIFO) costing. Clear explanations of FIFO under the perpetual v. periodic method, including how to compute and record purchases, sales, COGS and ending inventory.
Section 6: Last-in, first-out (LIFO) costing. How to compute and record purchases, sales, COGS, ending inventory and LIFO layers. When and how to compute LIFO liquidations.
Section 7: The lower of cost or market (LCM) rule. How to determine ceiling, floor, cost and market—then compute and apply LCM by item v. group v. total inventory. How to handle purchase commitments and decline and recovery in inventory value.
- • Complete preparation for the national Certified Bookkeeper exam!
- • Double-quiz in every workbook section assures mastery of every skill!
- • Workbook quiz questions mimic the national exam questions!