Ch 6 accounting

  1. Three inventory accounts
    • Raw materials
    • Work-in-process
    • Finished goods
  2. Inventory is recorded in what financial statement?
    Balance sheet
  3. Cost of goods sold
  4. cost of goods sold is recorded in what financial statement
    Income statement
  5. Beginning inventory + purchases = _____
    Costs of goods sold (COGS)
  6. Specific identification method
    Matches each unit of inventory with its actual cost
  7. FIFO
    First in, first out
  8. LIFO
    Last in, first out
  9. Weighted average cost
    Assume COGS and ending inventory consist of a weighted average cost of goods available for sale
  10. ____ more closely resembles
    the actual physical flow of inventory
  11. Higher reported ending inventory

    B. FIFO
  12. Higher reported net income in the income statement

    A. FIFO
  13. Lower reported inventory

    B. LIFO
  14. Lower net income-taxable income

    A. LIFO
  15. Recording inventory, DR ___ and CR ____
    • DR Cost of goods sold
    •   CR Inventory
Card Set
Ch 6 accounting
accounting chapter 6