GAAP Policies and Procedures, Second Edition

Chapter 4. Inventory

Definitions of Terms			45
Concepts and Examples			46
	Goods in Transit		46
	Accounting for Inventories		47
	Valuation of Inventories		48
		Overhead costs allocable to inventory	48
		Lower of cost or market rule	49
		Specific identification inventory valuation method	50
		First-in, first-out (FIFO) inventory valuation method	50
		Last-in, first-out (LIFO) inventory valuation method	52
		Dollar-value LIFO inventory valuation method	54
		Weighted-average inventory valuation method	57
Decision Trees			59
Policies			61
	Goods in Transit		61
	Accounting for Inventories		62
	Valuation of Inventories		62
Procedures			63
	Goods in Transit—Receiving Procedure		63
	Accounting for Inventories—Physical Count Procedure for Periodic Inventory		64
	Accounting for Inventories—Cycle Counting Procedure for Perpetual Inventory		66
	Accounting for Inventories—Part Logging Procedure for Perpetual Inventory		66
	Accounting for Inventories—Inbound Consignment Inventory		67
	Accounting for Inventories—Obsolete Inventory Review		67
	Valuation of Inventories—Period-End Inventory Valuation		67
	Valuation of Inventories—Lower of Cost or Market Calculation		68
Controls			69
	Goods in Transit		69
	Accounting for Inventories		69
	Valuation of Inventories		71
Forms and Reports			73
	Goods in Transit		73
	Accounting for Inventories		73
	Valuation of Inventories		76
Footnotes			77
	Disclosure of Inventory		77
Journal Entries			78
	Goods in Transit		78
		Record received goods	78
		Move inventory to work-in-process	78
		Move inventory to finished goods	78
		Sell inventory	78
	Accounting for Inventories		79
		Adjust inventory ...