LESSON 6-2 Inventory Costing 12/9/2018 LESSON 6-2 Inventory Costing RED
FIRST-IN, FIRST-OUT INVENTORY COSTING METHOD page 176 3 1 2 4 1. Assign units from most recent purchase. 2. Assign units from next most recent purchase. 3. Multiply ending inventory units by unit price. 4. Total the ending inventory columns. LESSON 6-2
LAST-IN, FIRST-OUT INVENTORY COSTING METHOD page 177 3 1 2 4 1. Assign units from earliest purchase. 2. Assign units from next earliest purchase. 3. Multiply ending inventory units by unit price. 4. Total the ending inventory columns. LESSON 6-2
WEIGHTED-AVERAGE INVENTORY COSTING METHOD page 177 LESSON 6-2
COSTING INVENTORY DURING PERIODS OF INCREASING PRICES page 178 LESSON 6-2
COSTING INVENTORY DURING PERIODS OF DECREASING PRICES page 179 LESSON 6-2
RESULTS OF THE THREE INVENTORY COSTING METHODS COMPARED page 179 LESSON 6-2
LOWER OF COST OR MARKET INVENTORY COSTING METHOD page 180 1 2 3 1. Calculate the cost. 2. Calculate the market price. 3. Determine the smaller number to use as the lower of cost or market amount. LESSON 6-2
TERMS REVIEW first-in, first-out inventory costing method page 181 first-in, first-out inventory costing method last-in, first-out inventory costing method weighted-average inventory costing method lower of cost or market inventory costing method LESSON 6-2