Unit 7 • 9 Hours • Grade 12 Business Operations

Unit 7: Inventory Accounting

How do we build, test, and defend a trustworthy ending inventory number?

Your Business Challenge

Sarah can count what is on the shelf, but she cannot clearly defend how ending inventory was built. This unit turns that founder problem into a professional inventory workflow.

What You'll Build

▶Build a month-by-month inventory story that explains beginning inventory, purchases, sales, and ending inventory.
▶Build FIFO, LIFO, specific identification, and weighted average comparisons from the same business data.
▶Build Excel workbooks that calculate COGS, ending inventory, and method comparisons with visible checks.
▶Build and present a group inventory recommendation workbook for a new business case.

Skills You'll Master

Ending inventory is a number the business must be able to explainBeginning Inventory + Purchases - Cost of Goods Sold = Ending InventoryBuying inventory, selling inventory, and holding inventory are not the same thingFIFO and LIFO can change COGS, ending inventory, and reported profitSpecific identification works best when items can be tracked exactlyWeighted average works well when many similar items flow togetherReliable workbooks need validation, checks, and method comparison logicA strong recommendation connects accounting method choice to business reality

Key Vocabulary

Key VocabularyOpen full glossary

FIFO

First-In, First-Out; an inventory method that assumes the oldest items purchased are the first ones sold.

先进先出法

InventoryAccounting

LIFO

Last-In, First-Out; an inventory method that assumes the most recently purchased items are the first ones sold.

后进先出法

InventoryAccounting

Weighted Average Cost

An inventory method that assigns the same average cost to every unit, calculated as Total Cost of Goods Available ÷ Total Units Available.

加权平均成本法

InventoryAccounting

Specific Identification

An inventory method that tracks the actual cost of each individual item sold, used for high-value or unique products.

个别认定法

InventoryAccounting

Cost of Goods Sold (COGS)

The total cost of inventory items sold during a period, calculated as Beginning Inventory + Purchases − Ending Inventory.

销货成本

InventoryAccounting

Ending Inventory

The value of inventory remaining at the end of an accounting period.

期末存货

InventoryAccounting

Inventory Turnover Ratio

A measure of how many times inventory is sold and replaced during a period, calculated as COGS ÷ Average Inventory.

存货周转率

InventoryRatio Analysis

Excel Table

A structured range of data in Excel with named columns, auto-expanding formulas, and built-in formatting.

Excel表

ExcelAutomation

Study these terms

These 8 terms appear across this unit. Use the bilingual glossary to review them, or start a vocabulary study session to practice with flashcards, matching, and speed round.

Study This Unit's Terms

Practice this unit's vocabulary with flashcards, a matching game, or a timed speed round. Your progress is tracked locally and can be exported.

Study Terms

Your Final Presentation

Present to real business professionals

45 minutes

Start Lesson

Practice Test & Inventory Valuation Mastery

Ready to prove your inventory expertise? Launch the Unit 7 practice test to rehearse cost flow, FIFO vs. LIFO trade-offs, weighted average logic, workbook checks, and ending-inventory reasoning with randomized questions from the whole unit.

Tip: Complete Lesson 10 first so you can apply workbook QA checks, recommendation logic, and presentation polish while reviewing your answers.

Start Practice Test