Day 117: Ch 6 Quiz B

After Quiz, watch these videos and take notes:

• Assigning Costs to Fixed Assets (6:57)
• Depreciation Concepts (5:45)
  Depreciation (9:09)
• Straight-line and Units of Production (5:29)
• Double-declining Balance Method (7:03)
• Disposal of Fixed Assets (2:15)
  Sales, Disposals, Depletion, Amortization (3:44)
• Capital and Revenue Expenditures (2:27)
• Natural Resources (4:45) 
• Intangible Assets (5:10)
• Asset Exchanges (5:34)

Day 115: Review Ch 6 Quiz Results

Day114: Ch 6 Quiz A

After the quiz:

• Review your Ch 6 notes
• Prepare for Chapter 6 Quiz B on Tuesday

eLearning Day 113: Ch 6 Practice Questions

eLearning Day Attendance

• fill out this Attendance Form

eLearning Day Assignment

Copy these questions into a Google Doc, share the doc with "anyone who has the link", copy the URL (link) and submit the assignment using the Assignment Submission Form

1. As it relates to the purchasing process, how many documents are sent to the accounting department to be analyzed and compared for accuracy and agreement before the journal entry is made?
2. When should a company take a physical count of inventory
3. Which inventory valuation method is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items?
4. Under which inventory valuation method is ending inventory made up of the oldest purchases?
5. When merchandise sold is assumed to be in the order in which the purchases were made, the company is using which inventory valuation method?
6. What are the two most widely used methods for determining the cost of inventory 
7. Which inventory method that assigns the most recent costs to cost of goods sold?
8. Which inventory costing method reports the most current prices in ending inventory?
9. Under which inventory method do accounting records maintain a continuously updated inventory value?
10. During a period of consistently rising prices, which method of inventory will result in reporting the greatest cost of merchandise sold?
11. If merchandise inventory is being valued at cost and the price level is steadily rising, which method of inventory costing will yield the highest net income?
12. Merchandise in inventory that can be bought elsewhere at a price that is lower than at which it was originally purchased, should be recorded at cost or market price?
13. Merchandise that is out of date, spoiled, or damaged can often be sold only at a price below its original cost. The value of such merchandise is referred to as _______________.
14. Why is it important to efficiently manage your inventory levels?
15. What does inventory turnover measure?
16. What does days sales in inventory measure?

Review Exercises 6-3 and 6-7 in your textbook.

Day 111: Review for Ch 6 Quiz - Inventory

Purchasing Process
Inventory Costing Methods
Comparing Methods
Lower of Cost or Market and Net Realizable Value
Analyzing Inventory Management Efficiency

1. Describe the purchasing process. Include information about the documents used and the departments impacted.
2. What is the difference between a perpetual and a periodic inventory system?
3. When are physical counts of inventory typically performed?
4. Which type of companies would use the specific identification method?
5. Under which inventory method would each of the following be true:
• older inventory
• newer inventory
• higher cost of goods sold
• lower cost of goods sold
• sell old inventory first
• sell new inventory first
• higher value of inventory
• lower value of inventory
• most current costs are used to value inventory
• older costs are used to value inventory
• higher net income
• lower net income
• higher taxes lower taxes
6. Explain the concepts of Lower-of-Cost-or-Market and Net Realizable Value
7. Why is it important to effectively manage your inventories?
8. What is the purpose of the Inventory Turnover calculation and what does it measure?
9. What are the formulas for calculating Inventory Turnover and Days Sales in Inventory

Inventory

EX 6-7 and 6-12