Table of
Contents
Chapter
1 - Overview of Inventory
Inventory Flow in a Push Environment
Inventory Flow in a Pull Environment
Chapter 2 - Periodic and Perpetual Inventory Systems
The Perpetual Inventory System
Chapter 3 - Inventory Record
Accuracy
Environmental Factors Impacting
Record Accuracy
Employee Factors Impacting Record
Accuracy
Labeling Issues Impacting Record
Accuracy
Inventory Naming Conventions
Impacting Record Accuracy
Inventory Data Collection Methods
The Data Entry Backlog Problem
The Negative Inventory Balance
Chapter 4 - Inventory Counting and
Reconciliation
How to Set Up Inventory Record
Keeping
Concerns about the Physical
Inventory Count
Chapter 5 - Estimating Ending
Inventory
The Effect of Overstated Ending
Inventory
Chapter 6 - Inventory Cost Layering
The First in, First Out Method
The Specific Identification Method
Chapter 7 - Standard Costing of Inventory
Historical, Attainable, and
Theoretical Standards
How to Account for Standard Costs
Variable Overhead Spending Variance
Variable Overhead Efficiency
Variance
Fixed Overhead Spending Variance
Problems with Variance Analysis
The Favorable or Unfavorable
Variance
Accounting for Direct Materials in
Job Costing
Accounting for Labor in Job Costing
Accounting for Actual Overhead Costs
in Job Costing
Accounting for Standard Overhead
Costs in Job Costing
The Importance of Closing a Job
The Role of the Subsidiary Ledger in
Job Costing
The First In, First Out Method
Process Costing Journal Entries
Chapter 10 - Overhead Allocation
Chapter 11 - Obsolete Inventory
Issues with Obsolete Inventory
Recognition
Chapter 12 - Lower of Cost or Market
Rule
Inventory Translation Adjustment
Chapter 13 - Inventory Spoilage, Rework, and Scrap
Accounting for Normal Spoilage
Accounting for Abnormal Spoilage
Accounting for the Sale of Spoilage
Chapter 14 - Joint and By-Product Costing
Split-Off Points and By-Products
Joint Product and By-Product Pricing
Special Concerns With By-Product
Costing
Chapter 15 - Inventory Disclosures
Chapter 16 - Inventory Transactions
Acquired Inventory Transactions
Engineering Change Order
Transactions
Lower of Cost or Market Adjustments
Obsolete Inventory Adjustments
Overhead Allocation Transactions
Scrap and Spoilage Adjustments
Chapter 17 - Internal Revenue Code
for Inventory
IRC Section 471 General Rule for
Inventories
IRC Section 472 Last In, First Out
Inventories
IRC Section 473 Qualified
Liquidations of LIFO Inventories
IRC Section 474 Simplified
Dollar-Value LIFO Method
IRC Section 1504(a) Affiliated
Group
Chapter 18 - Inventory Transfer Pricing
Market Price Basis for Transfer
Pricing
Adjusted Market Price Basis for
Transfer Pricing
Negotiated Basis for Transfer
Pricing
Contribution Margin Basis for
Transfer Pricing
Cost Plus Basis for Transfer Pricing
Cost Anomalies in a Cost-Based
Transfer Price
Pricing Problems Caused by Transfer
Pricing
The Tax Impact of Transfer Prices
Chapter 19 - Inventory Controls
In-Process Purchasing Controls
Additional Purchasing Controls
Fraud Related
Additional Purchasing Controls
Periodic Actions
Additional Receiving Controls
Fraud Related
Additional Receiving Controls
Periodic Actions
Additional Shipping Controls Fraud
Related
Additional Shipping Controls
Periodic Actions
Chapter 20 - Fraudulent Inventory
Transactions
Financial Statement Fraud Labor
Component
Financial Statement Fraud
Materials Component
Financial Statement Fraud Overhead
Component
Chapter 21 - Inventory Policies
Responsibility for Inventory Policy
Inventory Owned by Third Parties
Policy
Consigned Inventory Identification
Policy
Inventory Record Access Policy
Bill of Material Updates Policy
Standard Costing Updates Policy
Lower of Cost or Market Updates
Chapter 22 - Inventory Budgeting
Other Production Budget Issues
Budgeting for Multiple Products
Impact of Changes in Ending
Inventory
The Ending Finished Goods Inventory
Budget
Direct Materials Budgeting Overview
The Direct Materials Budget (Roll up
Method)
The Direct Materials Budget
(Historical Method)
The Direct Materials Budget (80/20
Method)
Anomalies in the Direct Materials
Budget
The Role of the Direct Materials
Budget
Chapter 23 - Inventory Measurements
Overview of Inventory Measurements
Inventory Turnover Measurements
Percent of Inventory Greater than XX
Days
Returnable Inventory Valuation
Opportunity Cost of Excess Inventory
Final Examination.....................................................................................................................................................247