Course Description - BC Bookkeeping Tutorials|

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Bean Counter's
So, you want to learn Bookkeeping !
Merchandise Inventory

Hello, it's me Dave again. For those of you that took my free So you want to learn Bookkeeping! Introductory Tutorial or any of my other bookkeeping tutorials we've already met. If not, I graduated from the University Of Tennessee with a B.S. degree in accounting and currently provide free Bookkeeping and Accounting Tutorials.
Who is this Course for ?
This bookkeeping tutorial and course is geared to business owners, managers, and individuals who have not had any formal bookkeeping training or on the job experience and need or want to learn the basics of managing inventories. Oh by the way, you can teach an "ole" dog new tricks. In other words, this bookkeeping tutorial is for beginners (newbies) or those needing a quick refresher and is only an introduction into the world of bookkeeping and accounting. They say a little knowledge is a dangerous thing. Well, my goal is to make you dangerous.
Prior Knowledge Needed
This tutorial assumes that you have a basic understanding of some accounting terminology , debits and credits, transaction analysis, and the general ledger and special journals.
If you need to "brush up", check out my Beginning Bookkeeping Tutorial So, you want to learn Bookkeeping !

Cartoons are used to add a bit of humor to your Learning Experience. Who says that Learning Can't Be Fun ? Not Me !
What's Covered ?

The Introduction provides an overview of inventories and their importance, and the special journals and records used to record and control this key asset.

Lesson 1 Inventory Methods discusses the periodic and perpetual methods for accounting for merchandise inventory and how inventory transactions are recorded using each method.

Lesson 2 Costing Methods explains the different methods that are used to determine and assign costs to inventory quantities on hand and sold.

Lesson 3 Estimating Inventories discusses the methods used to estimate the value (cost) of merchandise inventory when no physical count has been taken or few detailed records are available.

Lesson 4 Lower Of Cost Or Market explains why this special rule is used for valuing inventory and how to apply it.

Lesson 5 Accounting for Inventory discusses and reviews the accounts, subsidiary ledgers, records, and special journals used to record inventory transactions using the perpetual and periodic inventory methods.

Lesson 6 What You Should Know summarizes and reviews the methods, information, and knowledge needed to adequately record and control one of a wholesale or retail business's largest assets.

Learning Objectives
After completing this course, you should know the following:

  • The methods of accounting for inventories are the Periodic and Perpetual methods-what they are and how they're used.
  • Inventory amounts are normally stated at cost.
  • Various methods such as FIFO, LIFO, Average Cost, and Specific Identification are used to assign costs to the inventory quantities-what they are and how they're used.
  • Aware that circumstances at times may require you to estimate inventories using a method such as the Gross Profit Method or Retail Inventory Method.
  • At times market conditions may require you to value your inventory at less than cost using a rule called the Lower Of Cost Or Market Rule.
  • Some costing methods may require IRS approval.
  • The types of records needed to properly record and control inventory quantities and amounts and how to use them.
The Vertical Menu on the Left Side Of The Page contains the Lessons / Sections for Each Lesson.
In some cases, you may need to Scroll Down the Page to select the Lesson / Section.

Each Lesson / Section has Buttons at the Bottom of the Page to use for Moving Back to Prior Lessons / Sections and Moving Forward to the Next Lesson/ Section.

How Long ?
You should plan on spending approximately an hour on each lesson.

How To Use The Course
You can first View and Read The Lessons / Sections and then Watch the Videos
You can first Watch the Videos and then View and Read The Lessons / Sections
Inventory Videos and Final Exams

Inventory Videos are included at the end of key sections to emphasize key concepts. In addition, an Inventory Final Review Video and Final Exams are included at the end of the course to emphasize key concepts and test your knowledge.

Let's begin our Journey into the World Of Bookkeeping's Inventories !
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Cartoons on this site provided by Ron Leishman. All Toon images are copyright © . No images may be resold or redistributed without prior written permission from Ron Leishman. If you enjoyed them, get some of your own Toon-A-Day.

The information provided on this site is not intended to provide or be a substitute for specific individualized accounting, tax, legal, business, or investment planning advice. Where specific advice is necessary or appropriate, Bean Counter recommends consultation with a qualified tax advisor, CPA, Financial Planner or Investment Manager. The information provided herein is for general informational purposes only and should not be considered an individualized recommendation, personalized investment advice or an endorsement by Bean Counter. The information presented is obtained from what are considered reliable sources; however, its accuracy, completeness or reliability cannot be guaranteed and therefore should not be relied upon as such. Bean Counter accepts no liability for any direct or consequential loss arising from any use of this information.

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