Disscussion
• What is the actual purchase price of goods?
• What is the difference between gross sales and net sales?
• With constant price changes in the economy, how does management assign a value to its inventory?
• Describe the three different inventory cost flow methods for perpetual inventories
• What does it mean to classify and determine inventory quantities?
• What is the LIFO reserve and how/why is it used?
• What is the difference between gross sales and net sales?
• Describe some of the income statement and balance sheet effects of inventory errors.