Accounting 106 - Merchandise Inventory

Learn inventory valuation and management through periodic and perpetual systems, including FIFO, LIFO, and moving average methods, to build understanding of income statements and balance sheets.

Define inventory as the stock of goods for sale, including raw materials, semi-finished goods, and finished goods; compare periodic and perpetual systems and explain FIFO, LIFO, and average price methods.

Explain how to compute ending inventory and cost of goods sold under a perpetual inventory system using the fifo method, with comparisons to lifo and moving average.

Explain the lifo method by tracking opening inventory, purchases, and sales to determine ending inventory and cost of goods sold, with a brief look at the moving average method.

Learn how to apply the moving average method to inventory valuation, updating the average cost after each purchase and calculating ending inventory and cost of goods sold.

Determine ending inventory of 1,131 and cost of goods sold of 1,519 using the moving average method.

Apply the fifo method to calculate ending inventory and cost of goods sold for October 31, using opening 800 units and purchases, yielding ending inventory 600 units and cogs 1450.

Demonstrates the LIFO method in a perpetual inventory system, tracking opening inventory of 800, purchases, and sales to yield ending inventory 960 and cost of goods sold 1590.

This lecture computes profits for Hascol and Shell using stock valuation methods, detailing opening stock, purchases, and sales, with Hascol's ending inventory value 81,200 and profit 23,800.

Compute profit by determining cost of goods sold and ending inventory from May stock and purchases, then compare Shell's profit to Haskel's under the periodic system.

Apply the periodic system to March purchases, calculating units available for sale and the cost of goods available for sale, then determine ending stock using the average cost method.

Using the periodic method, this lecture demonstrates inventory valuation with the average cost method, and explains ending stock calculations and how it compares to the perpetual system.

Analyze November 2019 inventory under periodic system, calculating units available for sale, ending stock, cost of goods sold under first in, first out and average cost method, and compare profits.

Prepare an income statement for three inventory valuation methods, comparing sales, cost of goods sold, and ending inventory. Analyze which method yields higher gross profit, highlighting the average cost method.

Determine ending inventory using gross profit and cost of goods sold. Apply opening inventory and purchases to calculate cost of goods sold, then derive ending stock, 116,000 in the example.

Use algebra to determine ending inventory when gross profit is 20% of COGS, deriving COGS from sales and goods available for sale (opening stock plus purchases).

Learn how inventory valuation works with perpetual and periodic systems, moving averages, and income statement implications, plus practice with six questions, to prepare for the next course on depreciation.