New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Accounting 231- Class Notes for 2/22/16- Ch5: Inventory

by: Sophia Mattera

Accounting 231- Class Notes for 2/22/16- Ch5: Inventory ACC231

Marketplace > Arizona State University > Accounting > ACC231 > Accounting 231 Class Notes for 2 22 16 Ch5 Inventory
Sophia Mattera
Uses of Accounting Info I
Eric Rosano

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes cover how to calculate Gross Profit Method, and the many different methods of how to record inventory in accounting.
Uses of Accounting Info I
Eric Rosano
Class Notes
Accounting, Inventory, GAAP, Chapter 5, ASU, FIFO, LIFO, Average Cost, full disclosure, consistency
25 ?




Popular in Uses of Accounting Info I

Popular in Accounting

This 0 page Class Notes was uploaded by Sophia Mattera on Monday February 22, 2016. The Class Notes belongs to ACC231 at Arizona State University taught by Eric Rosano in Spring 2016. Since its upload, it has received 43 views. For similar materials see Uses of Accounting Info I in Accounting at Arizona State University.


Reviews for Accounting 231- Class Notes for 2/22/16- Ch5: Inventory


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 02/22/16
ACC 231 Class notes from 22216 Chapter 5 Allocating Cost Inventory 0 What should COGS really be 0 When many items of the same thing are purchased at different costs the lowest most conservative price is used for COGS GAAP Inventory Costing Four Methods 1 Speci c Identi cation 0 00000 Speci c cost of each unit Cost assigned actual cost paid Cost of goods sold actual cost Ending inventory actual cost remaining Rarely used An example of where it might be used would be in the sale of cars because each car has its own identi cation number so they would easily be able to track which on was sold 2 FIFO Firstin Firstout O O O O Earliest inventory cost Cost of goods sold oldest cost Ending inventory most recent costs Generally cost ow matches the physical ow 3 LIFO Lastin Firstout O O 0 Most recent costs Costs of goods sold latest costs Ending inventory oldest costs 4 Average Cost 0 Weighted average of the costs A business chooses whichever method they wish to use Consistencv and fulldisclosure are required for all methods Typically companies would choose to use FIFO because it maximizes income International companies are required to use LIFO instead of FIFO Fulldisclosure businesses must report in their statements which accounting method that they choose to use Conservatism being cautious understating amounts Bene ts to different methods o Closest to actual ow 0 Maximizes net income 0 Attracts investors o LIFO o Minimizes taxes 0 Minimizes inventory 0 Average Cost 0 quotmiddle groundquot Gross Pro t Method Beginning Inventory Purchases Cost of goods available for sale Ending inventory Cost of goods sold Ratios Inventory turnover ef ciency asset management 0 Costaverage inventory inventory turnover Dayssalesininventory liquidity going concern 0 Average inventory COGS 365 days Dayssalesin inventory 0 Calculates how quickly we are selling inventory


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Kyle Maynard Purdue

"When you're taking detailed notes and trying to help everyone else out in the class, it really helps you learn and understand the I made $280 on my first study guide!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.