BN EOO@OOS - N =R 45% & (3 2 mykcc.ca/assessmentte v (@ KOOTENAY a COLUMBIA COLLEGE Assignment 2 Briet.pd 3 E Q- COLUMBIA COLLEGE K KOOTENAY 1 Assignment Brief: Inventory Accounting and Analysis Assignment Title: Comprehensive Inventory Accounting and Analysis Objective: The objective of this assignment is to deepen your understanding of inventory accounting and analysis, including various inventory costing methods, application of accounting standards, and analysis using key financial ratios and Excel functions. Instructions: I Chapter Review: o Ensure you have thoroughly studied Chapter 5, focusing on inventory accounting and analysis. 2. Assignment Tasks: A. Perpetual Inventory System: o Describe the perpetual inventory system and explain how inventory transactions are recorded under this system. o Provide a step-by-step example of accounting for inventory purchases, sales, and returns using the perpetual inventory system B. Inventory Costing Methods: o Define and compare the following inventory costing methods: First-In, First- Out (FIFO), Last-In, First-Out (LIFO), and Weighted Average Cost. o Apply these methods to a given set of inventory data (provided below) and show the calculation of ending inventory and cost of goods sold (COGS) under each method + Inventory Data: * Beginning mventory: 100 units at $10 each * Purchases = 200 units at $12 each = 150 units at $15 each * Sales: = 250 units at $20 each * 100 units at $25 cach C. Accounting Standards for Inventory: o Explain the accounting standards (.g., GAAP, IFRS) related to inventory valuation and reporting. o Discuss how these standards ensure accurate financial reporting D. Periodic Inventory System: L a7 KOOTENAY Expand All | Collapse All v Answerl . Word Count: 0, Max Man;'a': |1 O