inventory valuation Flashcards
1
Q
cost of goods sold
A
opening inventory + purchases - closing inventory
2
Q
gross profit
A
sales revenue - cogs
3
Q
how is inventory shown in income statements
A
cogs
4
Q
how is inventory shown in SOFP
A
current asset
5
Q
SOFP
A
everything you owe and own at end of year
6
Q
FIFO
A
assumes you sold oldest inventory first
7
Q
LIFO
A
assumes you sold newest inventory first
8
Q
WAVCO
A
work out average inventory purchase price when you make a sale
9
Q
how do you work out WAVCO
A
total valuation of inventory/ however many units it represents = /
valuation - answer
