University:
Slippery Rock University of Pennsylvania
Course:
ACCT 209 | Financial Accounting
Academic year:

2023
Views:

68

Pages:

2
Author:

Diya Marquez

Accounting Ch 10 ● In times of rising prices, ending inventory determined using the LIFO inventory assumption will be lower than ending inventory determined using the FIFO inventory assumption ● Major differences between service companies & retail/manufacturing companies is that retailers & manufacturers must account for: ○ Inventory ○ Cost of goods sold ● Items held for sale in the normal course of business are referred to as inventory ● The type of income statement that reports a series of subtotals such as profit, operating income & income before taxes is a multiple step income statement ● Following methods are available for costing inventory: ○ Weighted average ○ LIFO ○ FIFO ○ Specific identification ● In times of rising prices, cost of goods sold determined using the LIFO inventory assumption typically will be higher than cost of goods sold determined using the FIFO inventory assumption

Accounting Chapter 10 Lecture Notes

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