Ch 36: WEST Business & Marketing Education: Inventory & Sales

About This Chapter

Brush up on the different components of merchandise inventory and sales. These short lessons and quizzes can help you prepare for the WEST Business & Marketing Education teacher certification exam.

WEST Business & Marketing Education: Inventory & Sales - Chapter Summary

The video lessons in this chapter can help you review for the WEST Business & Marketing Education test through lessons on inventory cost, periodic inventory systems, inventory valuations methods and more. The lessons cover:

  • Merchandising companies
  • Merchandise inventory
  • Inventory cost and accounting
  • Inventory systems
  • Recording purchases
  • Sales accounting
  • Inventory valuation
  • Lower of cost or market

Each lesson in this chapter includes a 5-10 minute video, text transcript and self-assessment quiz. After using the quizzes to test your knowledge of sales and inventory principles, you can easily find any part of the videos that need a second look with the embedded video tags.

WEST Business & Marketing Education: Inventory & Sales - Chapter Objectives

The WEST Business & Marketing Education exam gauges the skills of applicants seeking a credential to teach business and marketing in Washington State. The computer-based exam consists of 110 multiple-choice questions that cover five subareas. Inventory-related questions can be found in the accounting domain area. To prepare for this part of the test, you can use this chapter to review the principles of accounting that apply to inventory, including determining inventory cost and budgets, and the characteristics of inventory processing systems.

10 Lessons in Chapter 36: WEST Business & Marketing Education: Inventory & Sales
Test your knowledge with a 30-question chapter practice test
Merchandising Company: Definition, Activities & Income Components

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.

Items that Make Up Merchandise Inventory

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.

Inventory Cost: Definition, Methods & Types

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.

Accounting for Inventory Purchases

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.

Perpetual and Periodic Inventory Systems

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.

Recording Purchases Using the Perpetual System

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.

Accounting for Inventory Sales

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.

Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average

8. 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.

Net Realizable Value of Inventory: Definition & Method

9. 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.

The Lower of Cost or Market of Inventory: Definition & Method

10. 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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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Other Chapters

Other chapters within the WEST Business & Marketing Education (038): Practice & Study Guide course

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