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| Learning Objectives are classified as conceptual, analytical, or procedural.
After completing this chapter you should be able to: Conceptual C1 Identify the items making up merchandise inventory. C2 Identify the costs of merchandise inventory. Analytical A1 Analyze the effects of inventory methods for both financial and tax reporting. A2 Analyze the effects of inventory errors on current and future financial statements. A3 Assess inventory management using both inventory turnover and days' sales in inventory. Procedural P1 Compute inventory in a perpetual system using the methods of specific identification, FIFO, LIFO, and weighted average. P2 Compute the lower of cost and net realizable value.of inventory P3 Appendix 6A—Compute inventory in a periodic system using the methods of specific identification, FIFO, LIFO, and weighted average. P4 Appendix 6B—Apply both the retail inventory and gross profit methods to estimate inventory |