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

2. Chapter 8-2 Inventory information for Part 686 for the month of June. June 1 Beg. Balance 300 units @ $10 = $ 3,000 10Sold 200 units @ $24 11Purchased 800 units @ $12 =9,600 15 Sold 500 units @ $25 20 Purchased 500 units @ $13 =6,500 27 Sold 300 units @ $27 Example – Perpetual and Periodic Methods Cost Flow Assumptions LO 5 Describe and compare the cost flow assumptions used to account for inventories. 1.Assuming the Perpetual Inventory Method, compute the Cost of Goods Sold and Ending Inventory under FIFO, LIFO, and Average cost. 2.Assuming the Periodic Inventory Method, compute the Cost of Goods Sold and Ending Inventory under FIFO, LIFO, and Average cost. Goods Available $19,100

3. Chapter 8-3 Cost Flow Assumptions LO 5 Describe and compare the cost flow assumptions used to account for inventories. Perpetual Inventory FIFO Method +

4. Chapter 8-4 Cost Flow Assumptions LO 5 Describe and compare the cost flow assumptions used to account for inventories. Perpetual Inventory FIFO Method + Look another example illustration (8-15) Page 383

5. Chapter 8-5 Cost Flow Assumptions LO 5 Describe and compare the cost flow assumptions used to account for inventories. Perpetual Inventory LIFO Method +

6. Chapter 8-6 Cost Flow Assumptions LO 5 Describe and compare the cost flow assumptions used to account for inventories. Perpetual Inventory LIFOMethod LIFO Method + Look another example illustration (8-17) Page 384

7. Chapter 8-7 Cost Flow Assumptions LO 5 Describe and compare the cost flow assumptions used to account for inventories. Perpetual Inventory Moving Average Cost per unit sold is determined by dividing total inventory $ by total units on hand after each purchase. +

8. Chapter 8-8 Cost Flow Assumptions LO 5 Describe and compare the cost flow assumptions used to account for inventories. Perpetual Inventory Moving Average Cost per unit sold is determined by dividing total inventory $ by total units on hand after each purchase. +

9. Chapter 8-9 Cost Flow Assumptions LO 5 Describe and compare the cost flow assumptions used to account for inventories. Perpetual Inventory Moving Average + Look another example illustration (8-13) Page 382

10. Chapter 8-10 Cost Flow Assumptions LO 5 Describe and compare the cost flow assumptions used to account for inventories. Periodic Inventory FIFO Method +

11. Chapter 8-11 Cost Flow Assumptions LO 5 Describe and compare the cost flow assumptions used to account for inventories. Periodic Inventory LIFO Method +

12. Chapter 8-12 Cost Flow Assumptions LO 5 Describe and compare the cost flow assumptions used to account for inventories. Periodic Inventory Weighted Average +