Accounting & Exam Prep Hub

Follow a distributor through a supply shortage. Trace the units sold, calculate the cost released from older layers and isolate its effect on gross profit.

Work through a lamp maker’s turnover and days to sell. Then see how a faster turnover rate can hide a shortage of the product customers want.

Follow a lamp maker’s inventory note from raw materials to pledged goods, and reconcile the note to its balance sheet.

Reconcile a physical count, distinguish a recording error from a confirmed shortage, and see why a loss can be difficult to spot in periodic cost of goods sold.

Record the same transactions under two inventory systems and see why the cost entry appears at the sale date under one system and at period-end under the other.

Follow a shipment from the supplier’s invoice to unit cost, ending inventory and cost of goods sold.

A supplier quote, an expected selling price, and an original cost tell you different things. Use four steps to find designated market and record the inventory loss.

A $48 item that sells for $76.80 has a 60% markup and a 37.5% gross margin. Follow the same profit dollars through both formulas and an inventory estimate.

Estimate inventory at cost from net sales and a gross margin rate. A worked fire-loss example separates goods sold, goods recovered, and the estimated loss.

Use a bookstore’s cost and selling-price records to estimate ending inventory, check cost of goods sold, and see when a department average can mislead.