InventoriesandtheCostofGoodsSold幻灯片.pptVIP

LIFOExample Remember: Start with beginning inventory and then add other purchases until you reach the number of units in ending inventory. LIFOExample LIFOExample Now, we have allocated the cost to all 1,200 units in ending inventory. Next, let’s complete the table. LIFOExample Importance of an Accurate Valuation of Inventory An error in ending inventory in a year will result in the same error in the beginning inventory of the next year. For interim financial statements, we may need to estimate ending inventory and cost of goods sold. The Gross Profit Method Determine cost of goods avail