Explain the meaning of the FOB point in connection with an inventory purchase and its impact on the recording of the transaction.
. Identify the time at which cost of goods sold is computed in a perpetual inventory system as well as the recording made at the time of sale.
Identify the time at which cost of goods sold is computed in a periodic inventory system as well as the recording made at the time of sale.
. Provide the computation used in a periodic inventory system to derive cost of goods sold along with the adjusting entry necessary to enter the appropriate balances into the accounting system for each period.
. Understand the necessity of taking a physical inventory count.