Flashcards
Chapter 18 Flashcards
Cards in this deck (13)
- 1Perpetual Inventory SystemInventory records are continually updated; opposite of periodic inventory system
- 2Periodic Inventory SystemPhysical count of inventory taken at end of a time period. Inventory records are not continually updated
- 3Specific Identification MethodThis method calculates the cost of ending inventory by identifying each item remaining to invoice price
- 4Weighted Average MethodCalculates the cost of ending inventory by applying an average unit cost to items remaining in inventory for that period of time
- 5First in First out Method (FIFO)This method assumes the first inventory brought into the store will be the first sold. Ending inventory is made up of goods most recently purchased
- 6Last in Last out Method (LIFO)This method assumes the last inventory brought into the store will be the first sold. Ending inventory is made up of the oldest goods purchased
- 7Retail MethodMethod to estimate cost of ending inventory. The cost ratio times ending inventory at retail equals the ending cost of inventory
- 8Gross Profit MethodUsed to estimate value of inventory
- 9Inventory TurnoverRatio that indicates how quickly inventory turns
- 10Average InventoryTotal of all inventories divided by number of times inventory taken
- 11Just in time (JIT) Inventory SystemSystem that eliminates inventories. Suppliers provide materials daily as manufacturing company needs them
- 12Overhead ExpensesOperating expenses not directly associated with a specific department or product
- 13Distribution of overheadCompanies distribute overhead by floor space or sales volume
Information
- Description
- Flashcards on Chapter 18 Flashcards, created by AYDEN SALAIS on 29/09/2025.
- Created by
- AYDEN SALAIS
- Views
- 3
- Rating
More on Inventory Valuation and Costing Methods