C8
LO
-understand inventory classifications and different inventory systems
-determine the goods and costs included in inventory
-describe and compare the cost flow assumptions used to account for inventories
-identify special issues related to LIFO
-determine the effects of inventory errors on the financial statements



inventory issues
-classification
-cost flow
-control
-COGS

goods and costs included in inventory
-goods included
-costs included

cost flow assumptions
-specific identification
-average-cost
-FIFO
-LIFO

LIFO:special issues
-LIFO reserve
-LIFO liquidation
-dollar-value LIFO
-comparison of LIFO approaches
-advantages and disadvantages
-basis for selection

effect of inventory errors
-ending inventory misstated
-purchases and inventory misstated