Chapter 6: Inventories & Cost of Sales

CONCEPT C1

Inventory Items & Costs

The "Warehouse Rules" of ownership.

PROCEDURE P1

FIFO Costing

The "Milk Aisle" (Oldest sold first).

PROCEDURE P2

LIFO Costing

The "Coal Pile" (Newest sold first).

PROCEDURE P3

Weighted Average

The "Fuel Tank" (Mixed costs).

PROCEDURE P4

Specific Identification

The "Diamond Ring" (Exact tracking).

ANALYSIS A1

Inventory Turnover

Speed of sales.

ANALYSIS A2

Days' Sales in Inventory

Shelf life.

ANALYSIS A3

LCM & IFRS

The "Tech Gadget" (Value drops).

🎮 INTERACTIVE

Interactive Learning

Financial Ratios Calculator + Inventory Valuation Method Comparison Tool!

🎯 PRACTICE

Practical Case Simulation

Compare FIFO vs LIFO and make inventory costing decisions!