ACCT 201 1st Edition Lecture 19Outline of Last Lecture I. Inventory—Freight on board (FOB)Outline of Current LectureII. Inventory assumptionsCurrent LectureInventory Assumptions1. FIFO—first in, first out (oldest first)2. LIFO—last in, last out (newest first)3. Average Cost (weighted average)-quick and easy, no tax breaks, rarely usedSpecific Identification—low volume, high valueEx: cars-VIN number, jewelry stores- embedded barcode on merchandiseBook- 6-3:PurchasesFeb.3 1 TV at $700Mar. 5 1 TV at $750May 22 1 TV at $800SalesJun. 1 2 Tvs for $2400 ($1200 x 2)A = L + SE+2400 cash +2400 sales revenue FIFO: -1450 inventory -1450 COGS oldest Feb. 700 Mar. 750 1450-OR- LIFO: -1550 inv. -1550 COGS newest May 800 Mar. 7501550These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Avg. cost 2 TV for 700Qty x Price 1 TV for 7501 TV for 8004 total units 2950 total costApprox. $721.32/unit = total cost/ total
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