CE/CPE Course Information

Accounting for Inventories

CPE Credits: 4
Subject Area: Accounting and Auditing
Field of Study: Accounting
Program Level: Overview
Lesson Version: 18-1
Publication/Revision Date: August 29, 2017
Prerequisites/Advanced Preparation: None
Written By: Michael Kustanovich, CPA

After completing this course, you will be able to
  • Identify the components of the cost basis of inventory for a retailer and a manufacturer, and determine which costs should be capitalized and which should be expensed
  • Distinguish between perpetual and periodic inventory accounting systems
  • Identify which items should be included in year-end inventory
  • Apply the first-in, first-out (FIFO); last-in, first-out (LIFO); and average cost flow methods for inventories
  • Measure the inventory subsequent to initial recognition in the annual and interim financial statements
  • Apply the gross profit method to estimate the balances of inventories and cost of goods sold
  • Recognize the main differences between U.S. GAAP and IFRS in relation to inventory costing and measurement.

    This course was reviewed on January 18, 2019, and no updates or revisions were deemed necessary.

Course Topics
  1. Introduction
  2. Cost Basis of Inventory – Initial Measurement
  3. Inventory Accounting Systems and Period-End Inventory Physical Count
  4. Cost Flow Methods
  5. Inventory Measurement in the Financial Statements
  6. Gross Profit Method

This self-study course consists of an Audiovisual presentation or a 20-question True/False Introductory quiz, a Knowledge Transfer Outline with multiple-choice questions for study and review, and a Qualified Assessment of 20 questions.

This course is designed for your convenience. You may log out at any time during the course; your current position and all work will be saved. The next time you log in, you can resume right where you logged off.

State Board and other CPE agency registrations can be viewed on our sponsor approvals page.

For more information regarding administrative policies such as complaints and refunds, please contact our CPE Department at (800) 874-5346 ext. CPE (273).