Inventory Flashcards
1
Q
What are the 3 types of inventory?
A
Raw Materials Inventory, Work in Progress Inventory, and Finished Goods Inventory
2
Q
At what value is inventory recorded?
A
LCM = lower cost method
3
Q
What is the entry for inventory that is severely damaged - example: historical cost 100 new cost 80 (damaged)
A
Decrease inventory by $20, write off expense $20
4
Q
What are the two flows of cost?
A
FIFO (GAAP Requirement) & LIFO
5
Q
How do you calculate days as inventory?
A
Inventory/Daily COGS
6
Q
How do you calculate inventory turnover ratio?
A
365/Days as inventory
