Which goods really belong to the business, what they cost, and how that cost becomes cost of goods sold.
22
Games
6
Things you can do
What you will be able to do
By the end of this chapter
Decide which goods belong to the business at the end of the year, including goods still in transit and goods held on behalf of someone else.
Work out the cost of goods sold and the value of goods still on hand using FIFO (first-in, first-out, so the oldest goods are treated as sold first), LIFO (last-in, first-out, so the newest goods are treated as sold first), and weighted average.
Explain how each of these methods changes profit when prices are rising and when prices are falling.
Report goods at the lower of what they cost and what they can now be sold for, and record the write-down when the value has dropped.
Follow a counting or costing mistake through cost of goods sold, gross profit, and net income, and show how it corrects itself the next year.
Work out inventory turnover and days in inventory, and say what a higher or lower figure tells you about the business.
Every game in this chapter
All 22 games
Every game in this chapter is finished, tested on real phones, and ready to play.
Want to see more, use these with your own students, or tell us something is wrong? Write to us.
Terms of Use
Effective Date: August 2026
1. Intellectual Property
All games, software, content, design, and materials on this website and within the Accounting Arcade SCORM game suite are the exclusive intellectual property of David van Brecht, trading as Accounting Arcade. All rights are reserved.
2. Demo Games
The demo games on this website are provided for evaluation. You may play them, and where we offer a sample package for download you may download it and load it into your own learning platform to try it with your class. That is what those packages are for.
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Accounting Arcade games are designed to be SCORM 1.2 compliant. While we make every effort to ensure compatibility with standard LMS platforms, we cannot guarantee compatibility with all systems. We offer installation support to help ensure smooth deployment.
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Effective Date: August 2026
1. Information We Collect
You can read this website and play every game on it without signing up, without an account, and without giving us your name or your email address. Nothing you do inside a game is sent to us.
The one place this website sends us anything about you is the contact form. If you choose to fill it in, it sends us what you typed: your name and your email address, and — only if you fill them in — your institution, what you would like help with, and your message. If you never use the form, we hold nothing about you at all.
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The demo games on this website do not collect or store any personal data. When deployed via SCORM on your institution's LMS, any data collection is governed by your institution's own privacy policies.
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