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Ch. 5 - InventoryWorksheetSee all chapters
All Chapters
Ch. 1 - Introduction to Accounting
Ch. 2 - Transaction Analysis
Ch. 3 - Accrual Accounting Concepts
Ch. 4 - Merchandising Operations
Ch. 5 - Inventory
Ch. 6 - Internal Controls and Reporting Cash
Ch. 7 - Receivables and Investments
Ch. 8 - Long Lived Assets
Ch. 9 - Current Liabilities
Ch. 10 - Time Value of Money
Ch. 11 - Long Term Liabilities
Ch. 12 - Stockholders' Equity
Ch. 13 - Statement of Cash Flows
Ch. 14 - Financial Statement Analysis
Ch. 15 - GAAP vs IFRS
Sections
Merchandising Company vs. Manufacturing Company
Physical Inventory Count, Ownership of Goods, and Consigned Goods
Specific Identification
Periodic Inventory - FIFO, LIFO, and Average Cost
Perpetual Inventory - FIFO, LIFO, and Average Cost
Financial Statement Effects of Inventory Costing Methods
Lower of Cost or Market
Inventory Errors
Learn
Next SectionLower of Cost or Market
If the prices we pay for our Inventory are changing throughout the period, different inventory costing methods (FIFO, LIFO, Average Cost) are going to give us different results for Cost of Goods Sold and Ending Inventory.

Concept #1: Financial Statement Effects of Inventory Costing Methods: Rising Prices

Concept #2: Financial Statement Effects of Inventory Costing Methods: Falling Prices

Previous SectionPerpetual Inventory - FIFO, LIFO, and Average Cost
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