In this course, the basic concepts of inventory costing under the FIFO, LIFO and Average Cost systems are presented along with examples of each, using two separate layouts for calculation. Also, a discussion about the impact to the Income Statement and the Balance Sheet under each method will be presented.
In this course, the basic concepts of inventory costing under the FIFO, LIFO and Average Cost systems are presented along with examples of each, using two separate layouts for calculation. Also, a discussion about the impact to the Income Statement and the Balance Sheet under each method will be presented.
Course Series
This course is included in the following series:
11 CoursesBack to the Basics: Accounting Fundamentals
- Accounting Review: The Basics of Debits and Credits
- Transaction Analysis, T-Accounts, Debits and Credits, and Trial Balances
- Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
- The Accounting Equation and Financial Statements
- Bank Reconciliations, Cash, and Internal Controls
- Accounts Receivable Training: Bad Debts
- Equipment and Depreciation
- Inventory Costing
- Purchase and Sale of Inventory
- The Adjusting Process
- The Closing Process
Learning Objectives
- Discover basic concepts associated with inventory costing
- Recognize how to perform calculations on a sequence of inventory purchases and sales under the FIFO system
- Recognize how to perform calculations on a sequence of inventory purchases and sales under the LIFO system
- Recognize how to perform calculations on a sequence of inventory purchases and sales under the Average Cost system
43 Reviews (167 ratings)
Prerequisites
No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.
Can you please go over the review question. I taken and so far not understanding how the first question answer was $60,000 for Gross margin
Thank you,
Sales on Dec10: 1300*$40=52000
Sales on Dec25: 1400*$50=70000
Total Sales=122000
COGS on Dec10: (1000*$20)+(300*24)=27200
COGS on Dec25: (900*24)+(400*$26)+(100*$28)=34800
Total COGS=62000
Total Sales - Total COGS = 122000-62000=60000