- Different inventory cost flow methods
- FIFO
- LIFO
- Weighted average cost
- Under each method, to calculate
- COGS
- Ending inventory
- Gross profit
- Effect of each method on
- Firm’s liquidity
- Profitability
- Activity
- Solvency ratios
- Apply inventory valuation method under IFRS and U.S GAAP
- Calculate inventory losses and loss reversal
Inventory reported:
- Wholesalers and retailers:
- Reported in one account on balance sheet
- Manufacturing
- Raw materials
- Work-in-process
- Finished goods
