LO8-01: In a perpetual inventory system, determine the cost of goods sold using (a) specific identification, (b) average cost, (c) FIFO, and (d) LIFO. Discuss the advantages and shortcomings of each method.
LO8-02: Explain the need for taking a physica l inventory.
LO8-03: Explain shrinkage losses and other year-end adjustments to inventory.
LO8-04: In a periodic inventory system, determine the ending inventory and the cost of goods sold using (a) specific identification, (b) average cost, (c) FIFO, and (d) LIFO.
LO8-05: Explain the effects on the income statement of errors in inventory valuation.
LO8-06: Estimate the cost of goods sold and ending inventory by the gross profit method and by the retail method.
LO8-07: Compute inventory turnover and explain its uses.