FIRST-IN, FIRST-OUT INVENTORY COSTING METHOD

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Presentation transcript:

FIRST-IN, FIRST-OUT INVENTORY COSTING METHOD 3 3. Multiply ending inventory units by unit price. 2 2. Assign units from next most recent purchase. 1. Assign units from most recent purchase. 1 4 4. Total ending inventory columns. Lesson 6-2, page 173

LAST-IN, FIRST-OUT INVENTORY COSTING METHOD 3 3. Multiply ending inventory units by unit price. 1. Assign units from earliest purchase. 1 2 2. Assign units from next earliest purchase. 4 4. Total ending inventory columns. Lesson 6-2, page 174

LOWER OF COST OR MARKET INVENTORY COSTING METHOD 3 3. Determine the smaller number to use as the lower of cost or market amount. 2 2. Calculate the market price. 1 1. Calculate the cost. Lesson 6-2, page 177

TERMS REVIEW 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, page 178