Title: Module 2 Introduction: (CU2 M2) Inventory
Course: SkillsCom BA 211 15.0 > Section: Credit Unit 2 Module 2

This Module examines the accounting for inventory. The chapter begins with a review of merchandise inventory and an introduction to the inventory accounts found in a manufacturing organization. Four different costing methods, specific-identification, FIFO, LIFO, and average cost, are explained. The distinction between the cost flow of inventory versus the physical flow of inventory is discussed. The perpetual inventory record is explained. Using the perpetual inventory record, you will learn how to determine the quantity and cost of inventories as well as the cost of goods sold for FIFO, LIFO, and average cost methods. The related journal entries are illustrated. The inventory methods are compared, including the advantages and disadvantages of each.

Module Outcomes:

- Understand the interrelationship of accounting to other areas of business.
- Have familiarity with generally accepted accounting principles.
- Interpret the effect of business transaction on the accounting system.