196 pages [94 self-teaching + 102 self-quizzes with detailed answers]
Section 1: Introduction. What to include in merchandise costs, when and how to record the journal entries. How inventory is reported on the income statement as cost of goods sold and on the balance sheet as ending inventory.
Section 2: The perpetual method. How to compute and record journal entries for purchases (net or gross) . . . sales . . . purchase discounts . . . returns and allowances . . . customer sales returns . . . and inventory shrinkage.
Section 3: The periodic method. How to compute and record journal entries for purchases (net v. gross), sales, discounts, returns and allowances, sales returns, inventory shrinkage and closing out the inventory-related accounts at year end.
Section 4: Weighted average costing. How to compute ending inventory and COGS using weighted average costing (periodic method) and moving average costing (perpetual method).
Section 5: First-in, first-out (FIFO) costing. Clear explanations of FIFO under the perpetual v. periodic method, including how to compute and record purchases, sales, COGS and ending inventory.
Section 6: Last-in, first-out (LIFO) costing. How to compute and record purchases, sales, COGS, ending inventory and LIFO layers. When and how to compute LIFO liquidations.
Section 7: 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 that are followed by a decline in the value of inventory, then a recovery.
Publisher: AIPB
ALEJANDRO –
Great overview of inventory methodology with a great explanation of the use of the different inventory strategies a company can use.
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LORI –
The course is clear and easy to understand.
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ATHENA –
I found this course to be comprehensive and helpful. The quizzes covered the materials well.
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PAULA –
I found Mastering Inventory to be very practical and of course a great review of subject matter I haven’t covered for decades. The only comment is I found the coverage of Perpetual Moving Average Method to be a little confusing, specifically the illustration. However got through it with great understanding
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MATT –
Good class and informative
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WENDY –
4.5 stars
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CARRIE –
Enjoyed learning about Inventory in this series. I was new to the topic other than from previous short courses to understood current methods used in the businesses I supported at the time. Further, this book provided me well understood explanations on each method of Inventory used. Found that FIFO was much easier for me to understand in both the periodic and perpetual methods than LIFO’s periodic method. In fact, the LIFO section took more time to understand. In summary, I would highly recommend learning Inventory from this book as its thorough and provides example problems that are relatable to what is currently required in todays’ business world. The quizzes are the most important and should be taken over and over to fully understand each method. I found reading each section fully 2-4 times was beneficial to completing the Final Exam in less time. I had taken a trial of the final exam, and still had some difficulty with some of the questions that took me a bit longer to answer. Overall, the Final exam (back of book) requires at least 2 1/2 hours, however it took me almost 4, as some of the questions took me back to reference the material, and was helpful in correcting the wrong ideas I had at the time.
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