Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

Which of the following is the correct flow of manufacturing costs in a manufacturing company?

Raw Materials → Finished Goods → Work in Process → Cost of Goods Sold

Raw Materials → Work in Process → Finished Goods → Cost of Goods Sold

Finished Goods → Work in Process → Raw Materials → Cost of Goods Sold

Work in Process → Raw Materials → Finished Goods → Cost of Goods Sold

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Verified step by step guidance

Understand the concept of manufacturing costs flow: In a manufacturing company, costs are incurred at different stages of production. These costs flow through specific accounts as the production progresses.

Start with Raw Materials: Raw materials are the initial inputs used in production. These are purchased and stored until they are needed for manufacturing.

Move to Work in Process (WIP): When raw materials are used in production, they are transferred to the Work in Process account. This account also includes direct labor and manufacturing overhead costs incurred during production.

Transition to Finished Goods: Once the production process is complete, the costs accumulated in the Work in Process account are transferred to the Finished Goods account. This represents the completed products ready for sale.

End with Cost of Goods Sold (COGS): When the finished goods are sold, their costs are transferred from the Finished Goods account to the Cost of Goods Sold account, which is an expense on the income statement.