版权说明：本文档由用户提供并上传，收益归属内容提供方，若内容存在侵权，请进行举报或认领
文档简介
YESUNAccountingEnglish@20091Lesson6InventoryandCostofGoodsSalesYESUNAccountingEnglish@20092InventoryIssuesWhatisinventory?Whatcostsareincludedininventory?HowdoweseparateCOGSfromEnd.Inv?YESUNAccountingEnglish@20093InventoriesDefinitionAssetitemsheldforsaleintheordinarycourseofbusinessorgoodsthatwillbeusedorconsumedintheproductionofgoodstobesold.YESUNAccountingEnglish@20094TypesofCompaniesMerchandisingcompanySellsgoodsinsameformasacquired.ManufacturingcompanyConvertsrawmaterialintofinishedgoods.ServicecompanyProvidesintangibleservices.YESUNAccountingEnglish@20095TypesofCompanies/InventoriesMerchandisingSellsgoodsinsameforminwhichtheyareacquired.Inventorycosts(andcostsofgoodssold)=acquisitioncosts.YESUNAccountingEnglish@20096TypesofCompanies/Inventories
(Cont.)Manufacturingcompanyconvertsrawmaterialsandpurchasedpartsintofinishedgoods.3typesofinventories;Materials.Work-in-process.Finishedgoods.YESUNAccountingEnglish@20097TypesofCompanies/Inventories
(Cont.)Serviceorganizations(hotels,beautyparlors,plumbers)Mayhavematerialsinventories.YESUNAccountingEnglish@20098TypesofCompanies/Inventories
(Cont.)Professionalservicefirms(accountingfirms,legalfirms)Intangibleinventorycostsarecostsincurredforclientbutnotyetbilledcalledjobs-in-progressorunbilledcosts.YESUNAccountingEnglish@20099SuppliesTangibleitemsthatwillbeconsumedinthecourseofnormaloperations.e.g.,officesupplies,lubricants,repairparts.Notsoldandnotaccountedforaspartofcostofgoodssold.YESUNAccountingEnglish@200910MerchandiseInventoryInventoriesaccountedforatcost.CostincludescostofAcquiringmerchandise(invoicecostofgoods,freight-in)Makinggoodsreadyforsale.(unpackingandmarking)YESUNAccountingEnglish@200911MethodsofAccountingforPurchase(orcash)DiscountsRecordatinvoiceprice(inchina)Recorddiscountwhentaken.NetofdiscountChargediscountsnottakenwhenpaid.YESUNAccountingEnglish@200912TerminologyPurchase=receiptofmerchandisenottoplacingofapurchaseorder.Usuallytitletransferswhengoodsareshipped(FOBshippingpoint).YESUNAccountingEnglish@200913RelationshipofInventoryandCostofGoodsSoldBeginninginventory+netpurchases=goodsavailableforsaleGoodsavailableforsale=costofgoodssold+endinginventory.Equivalently:Beg.inventory+netpurchases-endinginventory=costofgoodssold.Netpurchases=grosspurchases-purchasereturnsandallowances+freight-inYESUNAccountingEnglish@200914MeasurementIssueDividinggoodsavailableforsalebetweenCOGSandEnd.Inventory.2approaches:Periodicinventorymethod.Perpetualinventorymethod.YESUNAccountingEnglish@200915PeriodicInventoryMethodDetermineamountofendinginventoryanddeducecostsofgoodssold.Countinventory(i.e.,aphysicalinventoryistaken)attheendoftheperiod.Multiplycounttimescostforeachitemtodeterminetotalamountofinventory.Beginninginventoryofcurrentperiod=endinginventoryofprecedingperiod.COGS=COGA-End.InventoryYESUNAccountingEnglish@200916PerpetualInventoryMethodMeasureamountactuallydeliveredtocustomers;deduceendinginventory.Perpetualinventoryrecordiskeptforeachitemintheinventory.Advantagesofperpetualinventorymethod:Detailedrecordisuseful.Builtincheck.Identifiesshrinkagebyitem.Incomestatementcanbepreparedwithouttakingaphysicalinventory.YESUNAccountingEnglish@200917InventoryCostingMethods
(CostFlowAssumptions)Specificidentification.Averagecost.FIFOLIFO(×)YESUNAccountingEnglish@200918SpecificIdentificationBigticket(highprice)items.Uniquelyidentifieditems.Mayofferopportunitytomanipulatecosts.YESUNAccountingEnglish@200919AverageCost(Beginninginventoryamount+purchases)/unitsavailableforsale=perunitinventorycosts=perunitcostofgoodssoldPeriodicmethod.Computedfortheentireperiod.Perpetualmethod.Anewunitcostcanbecalculatedaftereachpurchase.YESUNAccountingEnglish@200920First-in,First-out(FIFO)Expensescostsofoldestpurchasesfirst.Mostrecentlypurchasedgoodsareininventory.Likelybutnotnecessarytofollowactualflowofgoods.Endinginventoryapproximatescurrentcostofgoods.YESUNAccountingEnglish@200921Last-in,First-out(LIFO)AssumesmostrecentlypurchasedgoodsaresoldfirstInventorybasedoncostsofoldestpurchases.Costofgoodssoldusuallydoesnotreflectphysicalflow.Endinginventorymaybecostedatamountsofyearsago.Inventorymaybewellbelowcurrentcosts.YESUNAccountingEnglish@200922YESUNAccountingEnglish@200923ArgumentsforFIFOUsuallyfollowsphysicalflowofgoods.Ifpricesarebasedonoldestcost,resultsinbestmatching.Moreaccuratebalancesheetvaluation.Non-theoretical/practicalargument:Resultsinhighestincomeduringperiodsofrisingprices.YESUNAccountingEnglish@200924ArgumentsforLIFOIfpricesarebasedoncurrentcosts,resultsinbestmatchingofrevenuesandcostsandthereforemostusefulincomestatement.Closesttoreflectingcurrentorreplacementcostsofgoodssold.However,itisstillhistoricalcostsanddoesdifferfromcurrentcosts.YESUNAccountingEnglish@200925ArgumentsforLIFO
(cont.)Duringperiodsofpriceincreases:Highercostsofgoodssold.Lowertaxableincome.Lowerincometaxes.Highercashflows.IfLIFOfortaxpurposesthanalsofinancialreporting.YESUNAccountingEnglish@200926WhyNotMoreLIFO?IASandmostcountriesdonotpermit.Wouldrequireadoublesetofbooks.Pricesofsomeitemsarenotincreasing.BecauseofIRSconformityrequirement,lowerearningsreportedtoshareholders.YESUNAccountingEnglish@200927ThePrincipleofConsistencyOnceacompanyhasadoptedaparticularaccountingmethod,itshouldfollowthatmethodconsistently,ratherthanswitchmethodsfromoneyeartothenext.YESUNAccountingEnglish@200928LCMandOtherWrite-DownsofInventoryReducesthevalueoftheinventory.ObsolescenceAdjustinventoryvaluetothelowerofhistoricalcostorNetrealizablevalue(market).LowerofCostorMarket(LCM)YESUNAccountingEnglish@200929LowerofCostorMarket(LCM)Marketpricemaybebelowcostdueto:Physicaldeterioration.Changeinconsumertastes.Technologicalobsolescence.LCMisareflectionofconservatismconcept.MarketisdefinedasnetrealizablevalueYESUNAccountingEnglish@200930Netrealizablevalue(NRV)NRV=estimatedsellingprice-estimatedcostsofselling.Soinventorynotabovecashthatwillbereceived.YESUNAccountingEnglish@200931StepsinApplyingLCMComputemarket,Selectlowerofcostormarket.YESUNAccountingEnglish@200932InventoryestimationmethodYESUNAccountingEnglish@200933TheGrossProfitMethodDeterminecostofgoodsavailableforsale.Estimatecostofgoodssoldbymultiplyingthenetsalesbythecostratio.Deductcostofgoodssoldfromcostofgoodsavailableforsaletodetermineendinginventory.YESUNAccountingEnglish@200934TheGrossProfitMethod
ExampleInMarchof1999,Chemico’sinventorywasdestroyedbyfire.Chemico’snormalgrossprofitratiois30%ofnetsales.Atthetimeofthefire,Chemicoshowedthefollowingbalances:YESUNAccountingEnglish@200935TheGrossProfitMethod
Example
EstimateCostofGoodsSold.
YESUNAccountingEnglish@200936
温馨提示
- 1. 本站所有资源如无特殊说明，都需要本地电脑安装OFFICE2007和PDF阅读器。图纸软件为CAD,CAXA,PROE,UG,SolidWorks等.压缩文件请下载最新的WinRAR软件解压。
- 2. 本站的文档不包含任何第三方提供的附件图纸等，如果需要附件，请联系上传者。文件的所有权益归上传用户所有。
- 3. 本站RAR压缩包中若带图纸，网页内容里面会有图纸预览，若没有图纸预览就没有图纸。
- 4. 未经权益所有人同意不得将文件中的内容挪作商业或盈利用途。
- 5. 人人文库网仅提供信息存储空间，仅对用户上传内容的表现方式做保护处理，对用户上传分享的文档内容本身不做任何修改或编辑，并不能对任何下载内容负责。
- 6. 下载文件中如有侵权或不适当内容，请与我们联系，我们立即纠正。
- 7. 本站不保证下载资源的准确性、安全性和完整性, 同时也不承担用户因使用这些下载资源对自己和他人造成任何形式的伤害或损失。
评论
0/150
提交评论