FIRST-IN, FIRST-OUT INVENTORY COSTING METHOD

Slides:

Advertisements

Similar presentations

Reporting and Interpreting Cost of Goods Sold and Inventory Chapter 7 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

Advertisements

CPA, MBA BY RACHELLE AGATHA, CPA, MBA Inventory Slides by Rachelle Agatha, CPA, with excerpts from Warren, Reeve, Duchac.

CHAPTER 6 INVENTORY COSTING.

Record this!. Question 1 The Chelsea Video sells of $9000 of merchandise on account FOB destination on May 4. A/R 9000 –Sales 9000.

Chapter 6 - Inventory Valuation1 INVENTORY – Chapt 6. p BALANCE SHEET Biggest Asset Inventory  see example How can an inventory item be both raw.

Prepared by Charlie Cook The University of West Alabama © 2009 South-Western, a part of Cengage Learning Inventory and Turnover: Assignments Chapter 17.

Exercise 1 E The following information relates to the Jimmy Johnson Company : Date Ending inventory Price/Index Dec 31,

Reporting and Interpreting Cost of Goods Sold and Inventory

GLENCOE / McGraw-Hill.

© Copyright 2011 by M. Ray Gregg. All Rights Reserved. 1.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-2 Inventory Costing.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6-2 Inventory Costing FIFO inventory costing method LIFO inventory costing method Weighted-average.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 19-1 Determining the Quantity of Merchandise Inventory.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 The Nature of Merchandise Inventory.

Inventory Costing using FIFO, LIFO and AVERAGE Costing Methods 5-1 Calculate the following: CGS, Gross Profit and Ending Inventory under FIFO, LIFO and.

Chapter 8-1 Valuation of Inventories: A Cost-Basis Approach Chapter8 Intermediate Accounting 12th Edition Kieso, Weygandt, and Warfield Prepared by Coby.

Chapter 6: INVENTORY COSTING Unit 2 Test (covering chapter 5 and 6) will occur on Oct 24 (Friday)Unit 2 Test (covering chapter 5 and 6) will occur on Oct.

Chapter 9 Inventory (stock) valuation. Inventory (stock) valuation A good estimate of closing stock is provided by three methods of stock valuation: First-In-First-Out.

© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO2 Calculate the cost of merchandise inventory.

INVENTORY Chapter 8 1. OBJECTIVE 1 Describe inventory and discuss the related internal controls 2.

Chapter 22: Accounting for Inventory By: Audrey Marshall.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 19-2 Determining the Cost of Merchandise Inventory.

STOCK VALUATION  It refers to the technique used to measure the value of a firm’s inventories, be they raw materials, work-in progress and finished 

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6-2 Inventory Costing FIFO inventory costing method LIFO inventory costing method Weighted-average.

Reporting Inventory Chapter 19 Review: n Perpetual system n Periodic system n Inventory is an asset until it is sold, at which time it “becomes” the.

CHAPTER 19 ACCOUNTING FOR INVENTORY DETERMINING MERCHANDISE INVENTORY The largest asset of a merchandising business is Merchandise Inventory.

First In, First Out Inventory (FIFO) Using the price of merchandise purchased first to calculate the cost merchandise sold first. Last In, First Out Inventory.

Section 2Determining the Cost of Inventories What You’ll Learn  How to determine the cost of the merchandise on hand.  How to use the four inventory.

Chapter 6 Exercises Inventories and Cost of Sales.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 19-2 Determining the Cost of Merchandise Inventory.

Chapter Five Accounting for Inventories Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Chapter 22 Accounting for Inventory. Determining the Quantity of Merchandise Inventory Two methods used to determine the quantity of each item of merchandise.

Equivalent units ACTG 321 Agenda for Lecture 11. Equivalent Units Beginning of year Activity during the year End of year Units units made.

Cost & Management Accounting Material Lecture-7 Mian Ahmad Farhan (ACA)

Copyright © 2007 Prentice-Hall. All rights reserved 1 Accounting for Inventory in a Periodic System Chapter 6 - Appendix.

1 Inventories: Cost Measurement and Flow Assumptions Chapter 8 Intermediate Accounting 11th edition.

Cost & Management Accounting Material Costing Lecture-8 Mian Ahmad Farhan (ACA)

دكتر ميرزا حسن حسيني مولفان: تهيه كننده: دكتر ميرزا حسن حسيني.

Prepared by Johnny Howard © 2015 South-Western, a part of Cengage Learning.

How could the different inventory costing methods used by Best Buy, Amazon, and Target impact their respective income statements and balance sheets?

© 2014 Cengage Learning. All Rights Reserved.

Cengage – Century 21 Accounting -- Edited for Advanced Accounting

Inventory Pricing Methods

INVENTORIES AND THE COST OF GOODS SOLD

FIFO Perpetual Inventory Account

LESSON 6-2 Inventory Costing

7 Inventories Student Version.

Exercise – On October 26th, Sell 324 Units for $30 each

LESSON 19-2 Determining the Cost of Merchandise Inventory

LESSON 6-1 The Nature of Merchandise Inventory

LESSON 19-2 Determining the Cost of Merchandise Inventory

LESSON 19-1 Determining the Quantity of Merchandise Inventory

Accounting for Inventories

Valuation of Inventory

College Accounting, 22nd Edition

Accounting 30 Chapter 20 Final Jeopardy Topic 1 Topic 2 Topic 3

© 2014 Cengage Learning. All Rights Reserved.

© 2015 Cengage Learning. All Rights Reserved.

FLOW OF INVENTORY COSTS

LESSON 6-2 Inventory Costing

Accounting for Inventory

Determining the Quantity of Merchandise Inventory

Accounting for Inventory

FIRST-IN, FIRST-OUT INVENTORY COSTING METHOD

Inventory Valuation Example

CHAPTER NINETEEN APPENDIX

GROSS PROFIT METHOD OF ESTIMATING INVENTORY

CHAPTER NINETEEN APPENDIX

Example Exercise 1 Inventory Cost Flow Assumptions

Inventory Costing Methods

Presentation transcript:

FIRST-IN, FIRST-OUT INVENTORY COSTING METHOD 3 2 4 1 5 1. Total Units on Hand 2. Units from the Most Recent Purchase 3. Units Needed to Equal the Total Units on Hand 4. Unit Price Times Fifo Units 5. Total Fifo Cost Lesson 22-2, page 578

LAST-IN, FIRST-OUT INVENTORY COSTING METHOD 2 3 5 4 1 6 1. Total Units on Hand 2. Beginning Inventory Units 3. Units from the Earliest Purchase 4. Units Needed to Equal the Total Units on Hand 5. Unit Price Times Lifo Units 6. Total Lifo Cost Lesson 22-2, page 579

WEIGHTED-AVERAGE INVENTORY COSTING METHOD 1. Total Cost of Inventory Available 2. Weighted-Average Price per Unit 1 3. Cost of Ending Inventory 2 3 Lesson 22-2, page 580

COMPARISON OF INVENTORY METHODS Lesson 22-2, page 581

TERMS REVIEW first-in, first-out inventory costing method last-in, first-out inventory costing method weighted-average inventory costing method Lesson 22-2, page 582