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Chapter 6: Reporting and Analyzing Inventory – Study Notes

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Physical Inventory Count, Ownership of Goods, and Consigned Goods

Specific Identification

Periodic Inventory - FIFO, LIFO, and Average Cost

Perpetual Inventory - FIFO, LIFO, and Average Cost

Financial Statement Effects of Inventory Costing Methods

Lower of Cost or Market

Ratios: Inventory Turnover

Ratios: Average Days in Inventory