Inventory systems and valuation

Unit 5: Accounting for Inventories and Cost of Goods SoldTopic 2 of 5

Browse the Financial Accounting and Analysis syllabus

Financial Accounting and Analysis

15 units

1 Basic Understanding of Financial Accounting
2 Conceptual Framework of Accounting
3 Accounting Process
4 Accrual Basis of Accounting
5 Accounting for Inventories and Cost of Goods Sold
6 Accounting for Cash and Internal Control
7 Accounting for Receivables
8 Accounting for Current Liabilities and Contingencies
9 Accounting for Long-Lived Assets
10 Accounting for Long Term Liabilities
11 Accounting for Shareholders' Equity
12 Basic Financial Statements
13 Cash Flow Statement
14 Value Added Statement
15 Analysis of Financial Statement

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What the syllabus expects

Periodic and perpetual systems
Valuation methods and income measurement under both systems

Inventory systems and valuation

Bachelor of Business Studies (BBS) — First Year

Subject: Financial Accounting and Analysis (MGT 211)

Unit 5: Accounting for Inventories and Cost of Goods Sold

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

Explain the scope and key elements of inventory systems and valuation.
Identify the accounting treatment, prepare relevant records or calculations and interpret their financial effects.

Curriculum Scope

Periodic and perpetual systems
Valuation methods and income measurement under both systems

Detailed Microsyllabus

Inventory systems
1. Periodic records and period-end calculations.
2. Perpetual records of inventory and cost of goods sold.
3. Compare transaction entries under both systems.
Valuation methods
1. FIFO, average-cost and other source-prescribed methods.
2. Calculate ending inventory and income under each system.
3. Distinguish comparative study methods from those permitted by an applicable standard.

Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 20-22.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here.