In this section, we’ll explain the accounting of inventory and its relationship with cost of goods sold. By the end…
Retail inventory method of estimating inventory can be used by retailers maintaining the record of both the inventory’s cost as…
Gross profit method of estimating inventory uses the historical gross profit margin ratio to estimate the cost of goods sold.…
Why some entities need to estimate inventory? Answer to this question will be given in this post In perpetual inventory…
Inventory aging is a useful analysis based on inventory aging report. But what is an inventory aging report? It is…
What is slow moving inventory? All goods and products have a life and after that life, they become useless. Inventory…
Lower of cost or net realizable value rule means that inventory must be valued and reported at lower of the…
There are two systems of inventory record keeping: Periodic inventory system Perpetual inventory system Inventory valuation methods can be used…
Where inventory consists of small number of large or precious items, it is possible to identify individual items of inventory…
Inventories are goods held by an entity for sale and materials held by an entity for manufacturing goods for sale.…