Instructor-led lessons • Self-paced—learn on your schedule
Lesson 1
- What costs to include in the cost of merchandise.
- What journal entries to record—and when to record them.
- How inventory is reported on the income statement as cost of goods sold—and on the balance sheet as ending inventory.
Lesson 2
How to record merchandise inventory:
- The perpetual method. How to compute and record the journal entry for purchases, net v. gross . . . sales . . . purchase discounts . . . returns and allowances . . . customer sales returns . . . and shrinkage.
- The periodic method. How to compute and record the journal entry for purchases, net v. gross . . . sales discounts, returns and allowances . . . and for closing out inventory and related accounts at year end.
Lesson 3
- How to cost out inventory using weighted average (periodic method) v. moving average (perpetual method) costing.
- How to compute ending inventory and COGS using weighted average (periodic method) v. moving average (perpetual method) costing.
Lesson 4
- How to cost out inventory using First-in, first-out (FIFO) under the perpetual v. periodic method, including how to compute and record purchases, sales, COGS and ending inventory.
- How to cost out inventory using Last-in, first-out (LIFO): How to compute and record purchases, sales, COGS, ending inventory and LIFO layers. When and how to compute LIFO liquidations.
Lesson 5
- How to cost out inventory using the lower of cost or net realizable value (LCNRV) rule.
- How to compute and apply LCNRV by item v. group v. total inventory.
- How to handle purchase commitments when they are followed by a decline in the value of inventory, and when the decline is recovered.
Final Exam
Take the open-book final exam online, attain a grade of at least 70, and instantly receive a personal Certificate of Completion in Mastering Inventory, suitable for framing.