Chapter #7 Learning Objectives

Chapter Seven:  Inventories

Learning Objectives:

Explain the concepts underlying inventory accounting.

Calculate inventory cost under the periodic inventory system using various costing methods.

Explain the effects of inventory costing methods on income determination and income taxes.

Calculate inventory cost under the perpetual inventory system using various costing methods.

Using the retail method and gross profit method to estimate the cost of ending inventory.

Evaluate inventory level, and demonstrate the effects of inventory misstatements on income measurement.