Flashcards in F4 Notecards- Deck #2 Deck (6)
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1
Periodic versus Perpetual inventory methods:
-FIFO = same, so use periodic on exam
-LIFO = different, so have to calculate both
2
LIFO periodic method calculation
Take ending inventory in units and multiply by oldest cost available
3
COGS calculation:
Beginning inventory
+Purchases
-Less: Discounts
+Freight IN
-Less: Ending inventory
4
Net realizable value AKA
Price ceiling, AKA costs of completion
5
Net realizable value less normal profit margin AKA
Price floor
6
