All about Inventor y Other Terms Review Potpourr i $100 $100 $100 $200 $200 $200 $300 $300 $300 $400 $400 $400 $500 W. Avg & Specific ID $400 $100 $200 $300 $500 LIFO & FIFO $100 $200 $300 $400 $500 $500 $500
Mar 26, 2015
All about Inventory
Other Terms
Review Potpourri
$100 $100 $100
$200 $200 $200
$300 $300 $300
$400 $400 $400
$500
W. Avg & Specific ID
$400
$100
$200
$300
$500
LIFO & FIFO
$100
$200
$300
$400
$500 $500 $500
All About Inventory - $100
Property held for sale in the normal course of business, or to be combined with other items to produce goods for sale.
What is Inventory?
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All About Inventory - $200
Beginning inventory plus purchases for the period.
What is Goods Available for Sale?
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All About Inventory - $300
Number of units sold times the unit cost of the items sold.
What is Cost of Goods Sold (COGS or CGS)?
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All About Inventory - $400
The Cost of Goods Sold equation.
What is Beginning Inventory + Purchases – Ending Inventory = COGS?
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All About Inventory - $500
Goods in the process of being manufactured but that are not yet complete.
What is Work in Process Inventory?
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LIFO & FIFO - $100
The method of inventory costing in which the costs of the first goods purchased are assigned to the first goods sold.
What is FIFO (first-in, first-out)?
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LIFO & FIFO - $200
The method of inventory costing in which the costs of the last goods purchased are assigned to the first goods sold.
What is LIFO (last-in, first-out)?
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LIFO & FIFO - $300
Buy items at $1, $2, and $3 in that order; ____ is the cost assigned to the first item sold under LIFO.
What is $3?
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LIFO & FIFO - $400
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Buy items at $1, $2, and $3 in that order; __&__ are the costs assigned to the first two items sold under FIFO.
What are $1 and $2?
LIFO & FIFO - $500
Assigns the oldest unit costs to CoGS and the newest unit costs to Inventory.
What is FIFO?
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W. Avg & Specific ID - $100
Uses the weighted average unit cost of the goods available for sale for both CoGS and Ending Inventory.
What is Weighted Average Cost?
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W. Avg & Specific ID - $200
$ Cost of goods available for sale # of units available for sale
What is the Weighted Average Cost of goods available for sale?
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W. Avg & Specific ID - $300
DAILY DOUBLE!!!
W. Avg & Specific ID - $400
Costing method that identifies the cost of the specific item that is sold.
What is Specific Identification?
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W. Avg & Specific ID - $500
The Weighted Average CoGS amount when 2 items are purchased at $0.50 ea. and 3 at $3 ea.; and 4 are sold. (Try it without a calculator.)
What is $8? ($10/5 items = $2/item)
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Other Terms - $100
The initial stage of inventory, as used by manufacturers.
What is Raw Materials?
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Other Terms - $200
CoGS divided by average inventory.
What is Inventory Turnover Ratio?
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Other Terms - $300
Valuation rule that requires the inventory account to be reduced when the value of inventory falls below its cost.
What is Lower of Cost or Market (LCM)?
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Other Terms - $400
365/Inventory Turnover Ratio.
What is Days to Sell?
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Other Terms - $500
If costs per unit are increasing a company using FIFO will face _____(higher or lower) income tax expense.
What is higher?
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Review Potpourri - $100
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The account into which the cost of transportation is recorded when a perpetual inventory system is used.
What is Inventory?
Review Potpourri - $200
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The accounts affected by a Sales Return.
What are Sales Returns and Allowances, Cash (or A/R), Inventory, and Cost of Goods Sold?
Review Potpourri - $300
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This expression describes reductions in the cost of inventory purchases associated with unsatisfactory goods.
What are Purchase Returns and Allowances?
Review Potpourri - $400
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The internal control principle that relates to preparing a bank reconciliation.
What is independent verification?
Review Potpourri - $500
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The internal control principle that encourages companies to create a record of each transaction.
What is “document procedures”?
Daily Double Specify Your Wager!
W. Avg & Specific ID ---
The two categories into which inventory costing methods split the total dollar amount of goods available for sale.
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What are CoGS and Ending Inventory?