About This Chapter
How it works:
- Identify which concepts are covered on your merchandising operations and inventory in accounting homework.
- Find videos on those topics within this chapter.
- Watch fun videos, pausing and reviewing as needed.
- Complete sample problems and get instant feedback.
- Finish your merchandising operations and inventory in accounting homework with ease!
Topics from your homework you'll be able to complete:
- Inventory cost
- Accounting for inventory purchases
- Perpetual and periodic inventory
- Accounting for inventory sales
- Inventory counting
- Inventory valuation methods
- Net realizable value of inventory
1. Merchandising Company: Definition, Activities & Income Components
Do you know what a merchandising company is? If you said it's a store, you are right. It is a store, but it is also so much more. In this lesson, we are going to discuss some of the major components of a merchandising company.
2. Items that Make Up Merchandise Inventory
In order to operate, merchandising companies must carry inventory. What exactly makes up merchandise inventory? In this lesson, you will not only learn the answer to that question, but also several other important factors that relate to merchandise inventory.
3. Inventory Cost: Definition, Methods & Types
Have you ever thought about how much it costs a business to keep inventory in stock? It's not just the price the business pays for the items that it keeps in stock. It is so much more. In this lesson, we will discuss exactly what constitutes actual inventory cost.
4. Accounting for Inventory Purchases
A merchandising company must purchase inventory, and it has to be accounted for in the accounting records. In this lesson, you will learn how to calculate inventory purchase amounts as well as how to record them in the accounting journals.
5. Perpetual and Periodic Inventory Systems
Inventory management is an important part of business success. In this lesson, we will discuss the two types of inventory systems used in accounting today.
6. Recording Purchases Using the Perpetual System
Every transaction that occurs in a business, whether it is a purchase or a sale, must be accounted for. In this lesson, you will learn how to record purchases using the perpetual inventory system.
7. Accounting for Inventory Sales
In order to operate, a business must make sales. In this lesson, we are going to discuss sales of inventory. You will learn the types of sales made, the items that affect sales profit, and the way to record sales in the accounting records.
8. Recording Sales Using the Perpetual System
Each transaction that occurs in a business has an impact on at least two or more accounts. Because of that, recording transactions is essential. In this lesson, you will learn about recording sales transactions using the perpetual inventory system.
9. Reconciling the Bank Account After Purchases or Sales
Even if your accounting skills are top notch, you still should make sure that the books have been reconciled with the bank account in question. This lesson explains why.
10. Inventory Counting: Process & Methods
It is important for any business to know how much and what types of items that they have available to sell. In this lesson, you will learn what inventory is, how to count it, and why it is important.
11. Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
This lesson introduces you to the cost flow assumption methods of specific identification: FIFO, LIFO, and weighted average. You will also learn how to compute inventory in a perpetual system using the methods of FIFO, LIFO, and weighted average.
12. The Effects of Financial Statements on Costing Methods
The way you calculate the cost of your inventory can change the profit you show on your financial statement. Learn how one method can show higher profits, while the other method can give you tax benefits.
13. The Effects of Inventory Errors
For companies, a miscount of inventory can be a serious issue. In this lesson we'll look at the effects of inventory errors on companies, both with respect to profits and how the error should be recorded.
14. Net Realizable Value of Inventory: Definition & Method
Calculating inventory value is essential for correct reporting in accounting records. In this lesson, we are going to discuss what net realizable value is and why it plays an important role in inventory valuation.
15. The Lower of Cost or Market of Inventory: Definition & Method
No matter what kind of inventory a company has, that inventory has value. In this lesson, we'll talk about valuing inventory using the lower of cost or market rule.
16. Heckscher-Ohlin Model of Trade
In this lesson, you'll learn about the Heckscher-Ohlin model of international trade as well as associated concepts, such as comparative advantage and factor endowments.
17. Difference Between Standard Cost & Actual Cost
Dive into this lesson to learn what standard cost is and explore the two categories of standard cost. When you are through, you'll understand the difference between actual and standard cost and how standard and actual costs are used in accounting and in business.
18. What is List Price? - Definition, Examples & Formula
The list price is something you need to know every time you go shopping. Learn what the list price means and how you can use it to help you calculate your final cost when shopping.
19. List Price vs. Net Price
In this lesson you will learn the key differences between list and net price. You will also learn about trade discounts and why they are offered to buyers.
20. Net Price: Definition & Formula
In this lesson you will learn the definition of net price and how it is different from the catalog or list price. You will also learn about trade discounts and how they affect net price.
21. Gross Price vs. Net Price
Gross Price and Net Price are two methods of recording cash discounts related to purchases. Read on to know more on the difference between the two methods.
22. What is Gross Price? - Definition & Formula
After reading this lesson, you'll understand what aspects of a product go into its gross price. You'll also learn how you can calculate the gross price of a product.
23. What are Tangible Assets? - Definition & Examples
Companies use assets, or things of value, to manufacture and sell their goods and services to consumers. In this lesson, you will learn about tangible assets.
24. What are Finished Goods? - Definition & Example
In this lesson learn what the difference is between products that are ready for sale, known as finished goods, and products that you have bought and are using right now. You'll also see why using this term is important for businesses.
25. Zero Coupon Bond: Definition, Formula & Example
Zero coupon bonds are an alternative investment type compared to traditional bonds. In this lesson, we will explore what makes these investments unique and how investors can calculate a purchase price or yield of these bonds.
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