Chapter 6

Inventory Planning and Valuation

ESSENTIAL QUESTIONS

What is the nature of merchandise inventory? How is the cost of merchandise inventory determined using first-in, first-out inventory costing method? How is the cost of merchandise inventory determined using last-in, first-out inventory costing method? How is the cost of merchandise inventory determined using weighted-average inventory costing method? How is the cost of merchandise inventory determined using lower of cost or market inventory costing method? How is the cost of merchandise inventory determined using retail method of estimating inventory? How is the merchandise inventory turnover ratios calculated? How is the average number of days' sales in merchandise inventory calculated?

TERMS FOR CHAPTER 6

- consignment - consignee - consignor - stock record - stock ledger - purchase order - inventory record

- first-in, first-out inventory costing method - last-in, first-out inventory costing method - weighted-average inventory costing method - lower of cost or market inventory costing method - retail method of estimating inventory - merchandise inventory turnover ratio - average number of days' sales in merchandise inventory

ASSIGNMENTS

Define Terms for the Chapter The Nature of Merchandise Inventory Read pp. 166-172 1) View Power Point presentation intro and 6-1 2) Complete Application Problem 6-1 p. 185 3) Work on Study Guide 6 Time 2 days Inventory Costing Read pp. 173-178 1) View Power Point presentation 6-2 2) Complete Application Problem 6-2 p. 186 3) Continue to Work on Study Guide 6 Time 2 days Estimating the Inventory Read pp. 179-184 1) View Power Point presentation 6-3 2) Complete Application Problems 6-3 and 6-4 pp. 186-187 3) Complete Study Guide 6 Time 2 days

Complete Mastery Problem 6-5 pp. 187-188 Time 2 days Chapter Six Internet Activity Accounting in Your Career p. 167 Cases for Critical Thinking p. 189 (answer these questions on the same sheet as your chapter six internet activity) Time 2 days Challenge Problem 6-6 p. 188 may be completed for extra credit All Chapter 6 assignments must be handed in by February 27th. No Exceptions.