Weekly Schedule This week is an exam week. Please pay close attention to the schedule. Remember all assignments are due by 10:00 pm. 1) Read Lecture and reminder of Chapter #7 2) Case Problem: Lions and Tigers 3) DB (Discussion Board) ​
Due: Wed Feb 23rd 4) Assign #13 ​
Due: Thur Feb 24th 5) Exam #3 This is a TWO part exam covering Chapter 7. One part will be in CengageNow and one part will be in Angel. Both parts will be posted on Friday at 6:00 am. More information about the exam will be posted on Friday in this week lesson. I suggest you read it before you begin the exam. Lecture: Read page 128­134 LO2&3 – I suggest you walk through the material step by step. For the appendix (page 140­143) skip the journal entry section. You will NOT do journal entries for a periodic system; however, you will be expected to calculate the cost flow process for both periodic and perpetual. This chapter will be different from prior chapters in that you will be getting a break from journal entries, financial statements, etc. If you are struggling with some of the framework this chapter may be your chance to excel in spite of a weak base. There are four cost flow assumptions: Specific ID, FIFO, LIFO, and Average. The cost flow assumption does NOT need to match the actual movement of the inventory (i.e. you could use LIFO for milk). I have given some examples below to help you picture the process. The Specific ID is not really a cost flow because you know exactly what you sold and what you have left. I can see this working well for cars but not for most stores. FIFO: First in first out assumes that the first item you purchase is the first items you sell. A visual example would be milk. The gallon in the front is the first gallon they bought and the first one the sell. LIFO: Last in First Out assumes the last item you purchase is the first item you sell. A visual example would be screws. When the screws are restocked the new screws are added to the top so they sell first. The ones on the bottom are the oldest and represent the inventory. Average: This method mixes all the products together and takes an average price. Be careful this average must be based on the number of units at each price (Weighted Average.) These cost flow assumptions (FIFO, LIFO, Average) require specific steps to calculate Ending Inventory and Cost of Goods Sold. The steps are different for periodic and perpetual inventory systems. Make sure you know how to do all three methods under each inventory method. For perpetual you will use the schedules see the exhibits on page 130­133. Under periodic the cost flow relates to the calculation of Cost of Good Sold. Beginning Inventory Plus: Net Purchases Goods Available for Sale Less: Ending Inventory Cost of Goods Sold Other sources: Susan Crosson Inventory video Playlist http://www.youtube.com/view_play_list?p=5FDEEAC19654E9A2 (Skip video 7 & 8 – they are not applicable to our course) Homework and Discussion Forum As you complete the discussion board and homework please remember you only have one GRADED discussion board and one GRADED assignment this week. This means that each item is worth more points than prior weeks. 1) Case problem is posted as a separate document. 2) Discussion Board​
: DB 8 Wed You must have a MINIMUM of three posts. I expect a mix of original and response post. Topic:​
Anything to do with inventory. I have posted some questions to help you get started. Please feel free to use this forum to continue to discuss inventory after the due date. 3)​
Assign #13 ​
CengageNow Homework policies: The homework problems in CengageNow can be completed up to 5 times. Your grade will be based on the highest scoring assignment. For each assignment you will receive one hint per questions and the correct answer will be visible after the due date. Remember all assignment are due by 10PM DB 8: Wed For each inventory cost method – LIFO, FIFO, and Moving Average – which costs are presumed to be in ending inventory? Which costs are presumed to be in cost of goods sold? Why might a company choose to use the LIFO cost flow assumption? The FIFO assumption? The Moving Average assumption? How would you explain perpetual vs periodic inventory systems to a new business? How would you explain cost flow to Lions and Tigers? Explain why FIFO periodic and perpetual has the same Cost of Goods Sold and Ending Inventory? Explain why LIFO and average periodic and perpetual have different COGS and End Inventory? Discuss some terminology! Find an article on fraud and inventory! Exam Facts: When you log into CengageNow and Angel and you are agreeing to the following statement: I am enrolled in this course and completing this exam for myself. I am completing my own work and not discussing the content of this exam with anyone. I understand that violations of this policy will result in a 0.0 in the course. 1) This is a two part exam. 2) The exam is timed. 80 minutes for CengageNow; 20 question (2 problems & 18 MC) 60 minutes for Angel; 4 problems 3) In ANGEL you are required to show your calculations. Angel requires the use of lockdown browser. 4) You have one attempt for each part and you must finish the exam once you begin. 5) The exam must be started no later than 8:30 Sunday evening. 6) Advice: Don’t wait until the last minute. Close ALL other applications while testing (will increase stability and speed.) Contact CengageNow or Angel tech support and your instructor with any problems. If you lose your connection log back in immediately. Read the instructions for specific questions carefully.