Inventory Valuation and Recording
Principles of Accounts · Secondary 3 · Accounting for Inventory and Trade Payables · 3.º Período

Inventory Valuation and Recording

This topic covers the recording of inventory using the perpetual inventory system and the valuation of inventory at the lower of cost and net realisable value.

MOE Syllabus OutcomesMOE POA Syllabus Section 6.1: Inventory RecordingMOE POA Syllabus Section 6.2: Inventory Valuation

About This Topic

This topic covers the recording of inventory using the perpetual inventory system and the valuation of inventory at the lower of cost and net realisable value.

Key Questions

  1. How is inventory recorded in a perpetual system?
  2. What is the rule of lower of cost and net realisable value?
  3. How does inventory valuation affect profit?

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