Remember ! Acc

Question 1

Gross profit is the excess of sales revenue over cost of goods sold

Question 2

FIFO inventory method
—> take the most recent units * unit cost for ending balance and the old start with beginning. Balance for ending inventory for lifo vice versa

Question 3

Lifo take the old cost

Question 4

Application of the inventorz valuation rule may result in a lower inventory value than the cost inventory

Question 5

Beginning inventory + purchases - CoGs =Ending inventory
Beginning inventory + Purchases = Cost of goods available
Cost of goods available - Ending inventory =COGS