Inventory Accounting and Cost of Goods Sold — FIFO vs. LIFO, Inventory Turnover, and the COGS Model Explained | Chapter 6 of Financial Accounting
Inventory Accounting and Cost of Goods Sold — FIFO vs. LIFO, Inventory Turnover, and the COGS Model Explained | Chapter 6 of Financial Accounting Chapter 6 of Financial Accounting (12th Edition) by Thomas, Tietz, and Harrison introduces one of the most important topics for merchandising companies: how to account for inventory and calculate cost of goods sold (COGS). These elements directly impact gross profit, taxes, and decision-making. Whether using FIFO, LIFO, or the average-cost method, your choice of inventory system can significantly influence a company's financial outcomes. 🎧 Watch the full podcast-style summary above for a deep dive into inventory systems, COGS calculation, and GAAP-compliant valuation rules. Subscribe to the Last Minute Lecture YouTube channel for more financial accounting walkthroughs. 📘 Book Overview Unlike service companies, merchandising businesses such as Under Armour must account for both sales revenue and cost of goods sold . The d...