Valued at lower of cost or Net Reasonable Value (NRV)
Systerm
Perpetual
periodic
Perpetual
What did I start with? (beginning inventory)
What did I add to it? (purchases/product costs)
What did I use or sell?
What do I have now? (ending inventory)
periodic
what did I start with?
what did I add to it?
What did I use or sell?
What do I have now?
Purchase
Inventory
Accounts payable or cash
Sell
Accounts receivable or cash
Revenue
Cost of goods sold
Inventory
Manipulation
FIFO- first acquired are the first sold
LIFO- Last acquired are the first to be sold.
Average Cost- every time you purchase you calculate a new average cost of a unit of inventory.