Teacher Resources
Inventory Accounting
Which inventory valuation method best reflects our business reality and supports sound decision-making?
Duration: 2 weeksDifficulty: Intermediate
Driving Question
Sarah Chen runs TechStart Solutions and needs help choosing the right inventory valuation method for her growing business.
Which inventory valuation method best reflects our business reality and supports sound decision-making?
Performance Task
This mirrors real corporate decision-making where finance teams present inventory method choices to leadership for approval.
Advisory Brief + Executive Presentation
Deliver strategic recommendations on inventory valuation methods to an executive audience.
- 2-3 page written advisory brief with strategic rationale
- 5-minute live pitch presentation to executive panel
- Dynamic Excel model demonstrating all four inventory methods
- Professional visualization showing COGS impact under different methods
- Q&A response addressing questions about cash flow and reporting implications
Assessment Milestones
Aligned to implemented student lessons
Day 2: Basic Inventory Schedule
MilestoneComplete functional inventory schedules showing beginning inventory, purchases, and goods available for sale
- Accurate beginning inventory and purchases data entry
- Correct goods available for sale calculations
- Professional formatting and clear documentation
- Peer accuracy verification completed
Day 6: Dynamic Method Selection Feature
MilestoneAutomated method selection system with dropdowns and INDEX/MATCH logic
- Working dropdown menus for method selection
- INDEX/MATCH formulas functioning correctly
- Dynamic updates when methods are changed
- Error-free calculations across all scenarios
Lessons (10)
Click a day to open the detailed lesson plan
Day 1
Launch & Data Exploration
Entry event with Sarah's inventory challenge and team formation
45 minutes
Day 2
Inventory Cost Flow Foundations
Inventory flow concepts, beginning inventory, purchases, and COGS
45 minutes
Day 3
FIFO and LIFO: Two Ways to Value the Same Inventory
FIFO vs. LIFO logic and business implications
45 minutes
Day 4
Specific Identification and Weighted Average in Simple Excel
Build Excel Tables and formulas for Specific ID and Weighted Average
45 minutes
Day 5
Checkpoint & Reflection
Sprint retrospective and concept mastery assessment
45 minutes
Day 6
Advanced Modeling: Dynamic Method Selection
Create dynamic method selection with INDEX/MATCH dropdowns
45 minutes
Day 7
Ratio & Visualization: Inventory Turnover and COGS Impact
Calculate inventory turnover ratio and create impact visualizations
45 minutes
Day 8
Dress Rehearsal: One Shared Inventory Dataset, One Shared Workbook
Calculate inventory turnover ratio, chart COGS impact, create visualizations
45 minutes
Day 9
Group Project Kickoff: New Business, New Inventory Data, Same Workbook Logic
Outline strategic rationale, draft written brief, peer critique
45 minutes
Day 10
Final Presentation: Defend Ending Inventory, Method Choice, and Business Recommendation
Deliver advisory brief + pitch to executive panel
45 minutes
Prerequisite Resources
Files referenced in student lessons