Focus: Management theories and concepts come to life a
's Dilemma- Everv chapter opens vÅth a Nlanaoer's Dilemma. Students •ave and think about what they would do in that situation. Managers: Chapter openers introduce the managers being featured sn-les and philosophies. to Be a -Manager: This feature provides several activities that give students £management- Activities range from creating a code of ethics to designitx Chapter Material: The edition is written more succinctly to support is taught, but preserves the quality that made the book a bestseller. NiAlgÞY¾ to Remember unk inventory valuation to gross profit. We link inventory valuation to gross 'valuation involves allocating the cost of goods available for sale between cost of g YÏ: bggross profit,Ž sales less cost of goods sold, on the income statement) and ending inve fbðlance sheet). Use both perpetual and periodic inventory systems. Under the perpetual i ously track inventories and cost of goods sold by recording cost of goods sold at the periodic inventory system,ve compute cost of goods sold using an adjusting entry at y physical inventory at the end ofeach period under either system. They count the good frt each item from purchase records. Under the periodic system, the physical inventor •$f?idjusting entry to recognize cost ofgoods sold. Under the perpetual system, the physic the accounting records. Differences, if any, lead to adjustments to cost of goods sold an Calculate the cost of merchandise acquired. The cost of merchandise acqu goods plus directly identifiable inbound transportation costs less any cash or itreturns or allowanceS. Compute Income and Inventory values using the four principal invg ,ÇValuation of inventories involves the assignment of specific historical costs of units remaining in ending inventory. Four major inventory valuation methods *cific identification, weighted average, FIFO, and LIFO. Specific identification is products such as automobiles boats, or jewelry FIFO attributes the