Question: 1. How to calculate COGS and Ending Inventory using either the FIFO or LIFO cost flow assumption. 2. Understand the effects that these cost flow

1. How to calculate COGS and Ending Inventory using either the FIFO or LIFO cost flow assumption.

2. Understand the effects that these cost flow methods have on common ratios (i.e. ROA, ROE, Inventory Turnover, Current ratio, etc.)

3. Know what the LIFO Reserve is.

4. Know how to convert COGS and Ending Inventory from a LIFO basis to a FIFO basis

5. Know what a LIFO liquidation is, how to know that one has occurred, what effects it has on net income, and how to adjust the financial statements when one has occurred.

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