FINAL prep (equations and key terms)

Question 1

equation for cost of goods AVAILABLE FOR SALE

Answer 1

Beg. Inventory + net purchases

Question 2

equation for cost of goods sold

Answer 2

CGS for sale - ending inventory

Question 3

LIFO

Answer 3

Last in first out

Question 4

FIFO

Answer 4

First in, first out

Question 5

FISH (goes with LIFO)

Answer 5

First in, still here

Question 6

LISH (goes with FIFO)

Answer 6

List in, still here

Question 7

FOB

Answer 7

shipping destination ( in store or out the door)

Question 8

specific ID

Answer 8

ex: barcodes, car dealers, jewelers, antiques

Question 9

Perpetual Inventory Control

Answer 9

when stuff goes into in/out a business. ex: barcode scanners

Question 10

Periodic Inventory Control

Answer 10

when there is a physical inventory that has to be checked and counted

Question 11

What are the expenses of Inventory?

Answer 11

Security, insurance, cost of warehousing, and cost of spoilage.

Question 12

What does J.I.T. stand for?

Answer 12

Just In Time: refers to having an inventory supplier nearby to be able to restick product in 1 to 2 days.

Question 13

What type of inventory is on the BALANCE SHEET?

Answer 13

Inventory on hand

Question 14

What type of inventory is on the INCOME STATEMENT?

Answer 14

Cost of inventory sold