1.

Describe inventory classifications and different inventory systems

2. Identify the goods and costs included in inventory.
3. Compare the cost flow assumptions used to account for inventories.
4. Determine the effects of inventory errors on the financial statements
5. Describe and apply the lower-of-cost-or-net realizable value rule.
6. Identify other inventory valuation issues.
7. Determine ending inventory by applying the gross profit method.
8. Determine ending inventory by applying the retail inventory method.
9. Explain how to report and analyze inventory.

PREVIEW OF THE MODULE

The issues related to accounting and reporting for inventory are complex.
Inappropriate recognition and measurement of inventory leads to misstatements of
key measures of financial performance. The content and organization of the module
which  includes numerous conceptual discussions that are integral to the topics are as
follows:

 
Information on inventories helps to predict financial performance—in particular,
profits. In this module, we will discuss some of the valuation and estimation
concepts that companies use to develop relevant inventory information.