All about Inventory

1. All about Inventory LIFO & FIFO W. Avg & Specific ID Other Terms Review Potpourri $100 $100 $100 $100 $100 $200 $200 $200 $200 $200 $300 $300 $300 $300 $300 $400 $400 $400 $400 $400 $500 $500 $500 $500 $500

2. 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? Back to Board

3. All About Inventory - $200 Beginning inventory plus purchases for the period. What is Goods Available for Sale? Back to Board

4. 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)? Back to Board

5. All About Inventory - $400 The Cost of Goods Sold equation. What is Beginning Inventory + Purchases – Ending Inventory = COGS? Back to Board

6. All About Inventory - $500 Goods in the process of being manufactured but that are not yet complete. What is Work in Process Inventory? Back to Board

7. 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)? Back to Board

8. 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)? Back to Board

9. 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? Back to Board

10. LIFO & FIFO - $400 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? Back to Board

11. LIFO & FIFO - $500 Assigns the oldest unit costs to CoGS and the newest unit costs to Inventory. What is FIFO? Back to Board

12. 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? Back to Board

13. 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? Back to Board

14. W. Avg & Specific ID - $300 DAILY DOUBLE!!!

15. W. Avg & Specific ID - $400 Costing method that identifies the cost of the specific item that is sold. What is Specific Identification? Back to Board

16. 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) Back to Board

17. Other Terms - $100 The initial stage of inventory, as used by manufacturers. What is Raw Materials? Back to Board

18. Other Terms - $200 CoGS divided by average inventory. What is Inventory Turnover Ratio? Back to Board

19. 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)? Back to Board

20. Other Terms - $400 365/Inventory Turnover Ratio. What is Days to Sell? Back to Board

21. Other Terms - $500 If costs per unit are increasing a company using FIFO will face _____(higher or lower) income tax expense. What is higher? Back to Board

22. Review Potpourri - $100 The account into which the cost of transportation is recorded when a perpetual inventory system is used. What is Inventory? Back to Board

23. Review Potpourri - $200 The accounts affected by a Sales Return. What are Sales Returns and Allowances, Cash (or A/R), Inventory, and Cost of Goods Sold? Back to Board

24. Review Potpourri - $300 This expression describes reductions in the cost of inventory purchases associated with unsatisfactory goods. What are Purchase Returns and Allowances? Back to Board

25. Review Potpourri - $400 The internal control principle that relates to preparing a bank reconciliation. What is independent verification? Back to Board

26. Review Potpourri - $500 The internal control principle that encourages companies to create a record of each transaction. What is “document procedures”? Back to Board

27. Daily Double • Specify Your Wager!

28. W. Avg & Specific ID --- The two categories into which inventory costing methods split the total dollar amount of goods available for sale. What are CoGS and Ending Inventory? Back to Board