Inventory Recording and Valuation

What this note covers

1. The Perpetual Inventory System
2. Recording Inventory Purchases
3. Recording Inventory Sales and Cost of Goods Sold
4. FIFO — First-In, First-Out
5. Weighted-Average Cost (WAC)
6. Inventory Adjustments
7. Impact on Financial Statements and Method Comparison

7 sections · 14 key terms & formulas · 6 common mistakes