 | Inventory and Overhead
Learning Objectives
LU 18–1: Assigning Costs to Ending Inventory—Specific Identification; Weighted Average; FIFO; LIFO- List the key assumptions of each inventory method.
- Calculate the cost of ending inventory and cost of goods sold for each inventory method.
LU 18–2: Retail Method; Gross Profit Method; Inventory Turnover; Distribution of Overhead- Calculate the cost ratio and ending inventory at cost for the retail method.
- Calculate the estimated inventory using the gross profit method.
- Explain and calculate inventory turnover.
- Explain overhead; allocate overhead according to floor space and sales.
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