6: Assigning Costs to Merchandise
- Page ID
- 20105
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learning objectives
- LO1 – Calculate cost of goods sold and merchandise inventory using specific identification, first-in first-out (FIFO), and weighted average cost flow assumptions — perpetual.
- LO2 – Explain the impact on financial statements of inventory cost flows and errors.
- LO3 – Explain and calculate lower of cost and net realizable value inventory adjustments.
- LO4 – Estimate merchandise inventory using the gross profit method and the retail inventory method.
- LO5 – Explain and calculate merchandise inventory turnover.
- LO6 – Calculate cost of goods sold and merchandise inventory using specific identification, first-in first-out (FIFO), and weighted average cost flow assumptions — periodic.