Perpetual inventory cards (FIFO and specific identification) and stock adjustments

What this note covers

1. The perpetual inventory system and the inventory card
2. Building a FIFO inventory card
3. Specific identification and sales returns at cost
4. Stocktake adjustments: stock shortages and gains
5. Lower of cost and net realisable value
6. How this is examined and what separates a top response

6 sections · 10 key terms & formulas · 6 common mistakes