CPA REVIEW NOTES – Fresh Green
Name: Anne Rayos
Target Exam Date: ____________
“Success is the sum of small efforts, repeated day in and day out.”
Financial Accounting and Reporting (FAR)
INVENTORY VALUATION
FIFO
LIFO
Weighted Average
Key Concepts:
 • FIFO assumes oldest inventory is sold first.
 • LIFO assumes newest inventory is sold first.
 • Weighted Average uses average cost of all items.
Memory Hook:
FLAW (FIFO - Low, LIFO - Adjusted, Weighted)
Exam Tip:
Frequently tested under both periodic and perpetual systems.
Formulas to Remember:
Ending Inventory = Beginning Inventory + Purchases - COGS
Quick Reviewer / Quiz Space:
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