Ch 6 accounting

Three inventory accounts
- Raw materials
- Work-in-process
- Finished goods
Inventory is recorded in what financial statement?

Balance sheet
Cost of goods sold

expense
cost of goods sold is recorded in what financial statement

Income statement
Beginning inventory + purchases = _____

Costs of goods sold (COGS)
Specific identification method

Matches each unit of inventory with its actual cost
FIFO

First in, first out
LIFO

Last in, first out
Weighted average cost

Assume COGS and ending inventory consist of a weighted average cost of goods available for sale
____ more closely resembles
the actual physical flow of inventory

FIFO
Higher reported ending inventory

B. FIFO
Higher reported net income in the income statement

A. FIFO
Lower reported inventory

B. LIFO
Lower net income-taxable income

A. LIFO
Recording inventory, DR ___ and CR ____
- DR Cost of goods sold
- CR Inventory

Author

betsiie11

205336

Card Set

Ch 6 accounting

Description

accounting chapter 6

Updated

2013-03-06T07:41:08Z

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