F4 Notecards- Deck #2 Flashcards Preview

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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

Lower of cost or market AKA

Lower of cost or middle of the three (ceiling, floor, replacement cost)