1) Distinguish between manufacturing & non-manufacturing overhead (product versus period costs)

2) Classify costs as prime costs or conversion costs.

3) Prepare a statement of cost of goods manufactured, clearly showing total manufacturing costs & total manufacturing costs to account for.

4) Calculate unit product cost and selling price, given the mark-up applied by the entity.

5) Given a set of transactions of a merchandiser for a specified period, prepare an inventory record to determine the value of ending inventory & cost of goods sold.

6) Demonstrate how sales returns & purchases returns are treated in the inventory record and how they impact the income statement.

7) Prepare an income statement for a merchandising entity.

8) Use journal entries to demonstrate the difference between a perpetual & a periodic inventory system using purchases, freight-in & sale of inventory.

9) Explain the differences between the popular methods of inventory valuation and the requirements of IAS 2 - Inventories