会计学（第21版）课件：Inventories

InventoriesAccounting,21stEditionWarrenReeveFess

Someoftheactionhasbeenautomated,soclickthemousewhenyouseethislightningboltinthelowerright-handcornerofthescreen.Youcanpointandclickanywhereonthescreen.1.

Summarizeandprovideexamplesofinternalcontrolproceduresthatapplytoinventories.2.

Describetheeffectofinventoryerrorsonthefinancialstatement.3.

Describethethreeinventorycostflowassumptionsandhowtheyimpacttheincomestatementandbalancesheet.4.

Computethecostofinventoryundertheperpetualinventorysystem,usingthefollowingcostmethods:first-in,first-out;last-in,first-out;averagecost.ObjectivesAfterstudyingthischapter,youshouldbeableto:5.

Computethecostofinventoryundertheperiodicinventorysystem,usingthefollowingcostingmethods:first-in,first-out;last-in,first-out;averagecost.6.

Compareandcontrasttheuseofthethreeinventorycostingmethods.7.

Computethepropervaluationofinventoryatotherthancost,usingthelower-of-cost-or-marketandnetrealizationvalueconcepts.8.

Prepareabalancesheetpresentationofmerchandiseinventory.Objectives9.

Estimatethecostofinventory,usingtheretailmethodandthegrossprofitmethod.10.

Computetheinterprettheinventoryturnoverratioandnumberofdays’salesininventory.ObjectivesWhyisInventoryControlImportant?Inventoryisasignificantasset

andformanycompaniesthelargestasset.Inventoryiscentraltothemainactivityofmerchandisingandmanufacturingcompanies.Mistakesindetermininginventorycostcancausecriticalerrorsinfinancialstatements.Inventorymustbeprotectedfromexternalrisks(suchasfireandtheft)andinternalfraud

byemployees.ReceivingreportPurchaseorderInvoiceAGREEAGREEAGREEJOURNALDescriptionNov.9Post.Ref.DateInventory 122200AccountsPayable--XYZCo. 122200Purchasedmerchandiseonaccount.LIABILITIESOWNER’SEQUITYREVENUESASSETSCOSTS&EXPENSESEffectofInventoryErrorsonFinancialStatementsMerchandiseInventoryCostofMerchandiseSold

Ifmerchandiseinventoryis.......Costofmerchandisesoldis......Grossprofitandnetincomeare...Endingowner’sequityis.........

overstated

understatedoverstatedoverstatedNetIncome

Ifmerchandiseinventoryis.......Costofmerchandisesoldis......Grossprofitandnetincomeare...Endingowner’sequityis.........

understated

overstatedunderstatedunderstatedEffectofInventoryErrorsonFinancialStatementsFIFOPurchasedgoodsSoldgoodsInventoryCostFlowAssumptionsPurchasedgoodsSoldgoodsInventoryCostFlowAssumptionsLIFOAverageCostPurchasedgoodsSoldgoodsInventoryCostFlowAssumptionsInventoryCostingMethods40%30%20%10%0%43%34%19%4%FifoLifoAverageOtherPerpetualInventoryCostsInventorycostdatatodemonstrateFIFOandLIFOPerpetualSystemsCostofMdse.SoldItem127B Units Cost PriceJan. 1 Inventory 10 $20 4 Sale 7 $30 10 Purchase 8 21 22 Sale 4 31 28 Sale 2 32 30 Purchase 10 22FifoPerpetualItem127BFIFOPerpetualInventoryAccount Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200Thefirmbeginstheyearwith10unitsofItem127Bonhandatatotalcostof$200.InventorycostdatatodemonstrateFIFOandLIFOPerpetualSystemsCostofMdse.SoldItem127B Units Cost PriceJan. 1 Inventory 10 $20 4 Sale 7 $30 10 Purchase 8 21 22 Sale 4 31 28 Sale 2 32 30 Purchase 10 22FIFOPerpetualInventoryAccountOnJanuary4,7unitsofItem127Baresoldat$30each.Item127BFIFOPerpetualInventoryAccount Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost Cost

Thesaleof7unitsleavesabalanceof3units.Jan.1 10 20 200

4 7 20 140 3 20 60Jan.1 10 20 200OnJanuary4,7unitsofItem127Baresoldat$30each.InventorycostdatatodemonstrateFIFOandLIFOPerpetualSystemsCostofMdse.SoldItem127B Units Cost PriceJan. 1 Inventory 10 $20 4 Sale 7 $30 10 Purchase 8 21 22 Sale 4 31 28 Sale 2 32 30 Purchase 10 22FIFOPerpetualInventoryAccountOnJanuary10,thefirmpurchasedeightunitsat$21each.Item127BFIFOPerpetualInventoryAccount Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200

4 7 20 140 3 20 60

10 8 21 168 3 20 60

8 21 168OnJanuary10,thefirmpurchasedeightunitsat$21each.

Becausethepurchasepriceof$21isdifferentthanthecostoftheprevious3unitsonhand,theinventorybalanceof11unitsisaccountedforseparately.InventorycostdatatodemonstrateFIFOandLIFOPerpetualSystemsCostofMdse.SoldItem127B Units Cost PriceJan. 1 Inventory 10 $20 4 Sale 7 $30 10 Purchase 8 21 22 Sale 4 31 28 Sale 2 32 30 Purchase 10 22FIFOPerpetualInventoryAccountOnJanuary22,thefirmsoldfourunitsfor$31each.Item127B Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200

4 7 20 140 3 20 60 10 8 21 168 3 20 60

8 21 168FIFOPerpetualInventoryAccount

22 3 20 60

1 21 21 7 21 147

Ofthefourunitssold,threearefromthefirstunitsin(fifo)atacostof$20.OnJanuary22,thefirmsoldfourunitsfor$31each.FIFOPerpetualInventoryAccountOnJanuary28,thefirmsoldtwounitsat$32.InventorycostdatatodemonstrateFIFOandLIFOPerpetualSystemsCostofMdse.SoldItem127B Units Cost PriceJan. 1 Inventory 10 $20 4 Sale 7 $30 10 Purchase 8 21 22 Sale 4 31 28 Sale 2 32 30 Purchase 10 22Item127B Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200

4 7 20 140 3 20 60 10 8 21 168 3 20 60

8 21 168FIFOPerpetualInventoryAccount 22 3 20 60

1 21 21 7 21 147

28 2 21 42 5 21 105OnJanuary28,thefirmsoldtwounitsat$32.FIFOPerpetualInventoryAccountOnJanuary30,purchasedtenadditionalunitsofItem127Bat$22each.InventorycostdatatodemonstrateFIFOandLIFOPerpetualSystemsCostofMdse.SoldItem127B Units Cost PriceJan. 1 Inventory 10 $20 4 Sale 7 $30 10 Purchase 8 21 22 Sale 4 31 28 Sale 2 32 30 Purchase 10 22Item127B Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200

4 7 20 140 3 20 60 10 8 21 168 3 20 60

8 21 168FIFOPerpetualInventoryAccount 22 3 20 60

1 21 21 7 21 147

28 2 21 42 5 21 105

30 10 22 220 5 21 105

10 22 220

Totals 18 $388 13 $263 15 $325OnJanuary30,purchasedtenadditionalunitsofItem127Bat$22each.LifoPerpetualItem127BLIFOPerpetualInventoryAccount Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200Thefirmbeginstheyearwith10unitsofItem127Bonhandatatotalcostof$200.Item127BLIFOPerpetualInventoryAccount Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200

4 7 20 140 3 20 60

OnJanuary4,thefirmsold7unitsat$30each.Item127BLIFOPerpetualInventoryAccount Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200 4 7 20 140 3 20 60

10 8 21 168 3 20 60

8 21 168OnJanuary10,thefirmpurchasedeightunitsat$21each.Notethatanewlayerisformed.Item127BLIFOPerpetualInventoryAccount Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200 4 7 20 140 3 20 60 10 8 21 168 3 20 60

8 21 168OnJanuary22,thefirmsellsfourunitsat$31each.

22 4 21 84 3 20 60 4 21 84 Ofthe4unitssold,allcomefromthemostrecentpurchaseatacostof$21each.Item127BLIFOPerpetualInventoryAccount Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200 4 7 20 140 3 20 60 10 8 21 168 3 20 60

8 21 168OnJanuary28,soldtwounitsat$32each. 22 4 21 84 3 20 60 4 21 84

28 2 21 42 3 20 60 2 21 42Item127BLIFOPerpetualInventoryAccount Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200 4 7 20 140 3 20 60 10 8 21 168 3 20 60

8 21 168OnJanuary30,purchase10unitsat$22each. 22 4 21 84 3 20 60 4 21 84 28 2 21 42 3 20 60 2 21 42

30 10 22 220 3 20 60 2 21 42 10 22 220Item127BLIFOPerpetualInventoryAccount Purchases CostofMdse.Sold InventoryBalance Unit Total Unit Total Unit Total

DateQty. Cost CostQty. Cost CostQty. Cost CostJan.1 10 20 200 4 7 20 140 3 20 60 10 8 21 168 3 20 60

8 21 168 22 4 21 84 3 20 60 4 21 84 28 2 21 42 3 20 60 2 21 42 30 10 22 220 3 20 60 2 21 42 10 22 220Totals 18 $388 13 $266 15 $322FifoPeriodicJan.1 Beginning Inventory200units@$9Mar.10 Purchase300units@$10400units@$11Sept.21Purchase100units@$12Nov.18Purchase1,000unitsavailableforsaleduringyearFifoPeriodicFifoPeriodic200units@$9300units@$10400units@$11100units@$121,000unitsavailableforsaleduringyear $10,400= $1,800 Jan.1= 3,000 Mar.10= 4,400 Sept.21= 1,200 Nov.18CostofmerchandiseavailableforsaleFifoPeriodicAphysicalcountonDecember31revealsthat700ofthe1,000unitshavebeensold.Usingfifo,thefirstunitspurchasedaretheoreticallythefirstunitssold.WebeginthecountwithJanuary1.FifoPeriodic200units@$9300units@$10400units@$11100units@$121,000unitsavailableforsaleduringyear $10,400= $1,800 Jan.1= 3,000 Mar.10= 4,400 Sept.21= 1,200 Nov.18Soldthese200Soldthese300Sold200ofthese200units@$11= $0 Jan.1= 0 Mar.10= 2,200 Sept.21 $3,400EndinginventoryCostofmerchandiseavailableforsale $10,400Lessendinginventory 3,400Costofmerchandisesold $7,000FifoPeriodicJan.1200unitsat$9SummaryofFifoPeriodicMar.10300unitsat$10Sep.21400unitsat$11Nov.18100unitsat$12$1,800$3,000$4,400$1,200PurchasesMerchandiseAvailableforSale$1,800$3,000$2,200CostofMerchandiseSold200unitsat$9$10,400$2,200$1,200$7,000MerchandiseInventory$3,400300unitsat$10200unitsat$11200unitsat$11100unitsat$121,000units700units300unitsLifoPeriodicJan.1 Beginning Inventory200units@$9Mar.10 Purchase300units@$10400units@$11Sept.21Purchase100units@$12Nov.18 Purchase1,000unitsavailableforsaleduringyearLifoPeriodicUsinglifo,themostrecentbatchpurchasedisconsideredthefirstbatchofmerchandisesold.Jan.1 Beginning Inventory200units@$9Mar.10 Purchase300units@$10400units@$11Sept.21Purchase100units@$12Nov.18 Purchase1,000unitsavailableforsaleduringyearLifoPeriodicAssumeagainthat700unitsweresoldduringtheyear.200units@$9300units@$10400units@$11100units@$121,000unitsavailableforsaleduringyearLifoPeriodicSoldthese100Soldthese400Sold200ofthese100units@$10= $1,800 Jan.1= 3,000 Mar.10= 4,400 Sept.21= 1,200 Nov.18 $10,400001,000EndingInventory$2,800Costofmerchandiseavailableforsale $10,400Lessendinginventory 2,800Costofmerchandisesold $7,600LifoPeriodicJan.1200unitsat$9SummaryofLifoPeriodicMar.10300unitsat$10Sep.21400unitsat$11Nov.18100unitsat$12$1,800$3,000$4,400$1,200$1,800$1,000CostofMerchandiseSold200unitsat$9$10,400$4,400$1,200$2,800$7,600100unitsat$10200unitsat$10400unitsat$11100unitsat$12$2,000700units1,000units300unitsPurchasesMerchandiseAvailableforSale$1,800CostofMerchandiseSoldJan.1 Beginning Inventory200units@$9Mar.10 Purchase300units@$10400units@$11Sept.21Purchase100units@$12Nov.18 Purchase1,000unitsavailableforsaleduringyearTheaveragecostperiodicmethodisbasedontheaveragecostofidenticalunits.AverageCostPeriodicAverageCostPeriodic200units@$9 =$1,8001,000unitsavailableforsaleduringyear300units@$10 =$3,000400units@$11 =$4,400100units@$11 =$1,200$10,400CostofmerchandiseavailableforsaleCostofMerchandiseAvailableforSaleUnitsAvailableforSaleDuringYear=AverageUnitCost$10,4001,000Units=$10.40perUnitAverageCostPeriodicCostofmerchandiseavailableforsale $10,400Lessendinginventory($10.40x300) 3,120Costofmerchandisesold $7,280Toverifythisamount,multiply700unitssoldtimes$10.40togetthesame$7,280.AverageCostPeriodic $3,800

2,700

4,650

3,920Total $15,520 $15,472 $15,070

ValuationofInventoryatLower-of-Cost-or-MarketA 400 $10.25 $9.50 $4,100 $3,800B 120 22.50 24.10 2,700

2,892C 600 8.00 7.75 4,800 4,650D 280 14.00 14.75 3,920

4,130

Unit Unit Inventory Cost Market Total Total LowerItem Quantity Price Price Cost Market CorMThemarketdeclinebasedonindividualitems

($15,520–$15,070)=$450

AssetsCurrentassets: Cash $1940000 Accountsreceivable $8000000 Lessallowancefor doubtfulaccounts 300000 7700000 Merchandiseinventory atlowerofcost(first-in, first-outmethod)ormarket 21630000 Metro-Arts

BalanceSheet

December31,2007PresentationofMerchandiseInventoryontheBalanceSheetEstimatingInventoryCostRetailMethodofEstimatingInventoryCostRetailmethodisbasedonrelationshipbetweencostofmerchandiseavailableforsaleandtheretailprice.Retailpricesofallmerchandisemustbeaccumulatedandtotaled.Inventoryatretailiscalculatedatretailpriceofmerchandiseavailableforsalelessnetsalesatretail.Ratioiscalculatedascostdividedbyretailprice.Inventoryatretailpricetimescostratioequalsestimatedcostofinventory.

RetailInventoryMethodStep1: Determinetheratioofcosttotheretailprice.

Cost

RetailMerchandiseinventory,Jan.1 $19,400 $36,000PurchasesinJanuary(net) 42,600

64,000Merchandiseavailableforsale $62,000 $100,000Ratioofcosttoretailprice=$62,000$100,000=62%

RetailInventoryMethodStep2: Determinetheendinginventoryatretail.SalesforJanuary(net) 70,000Merchandiseinventory,January31,atretail $30,000

Cost

RetailMerchandiseinventory,Jan.1 $19,400 $36,000PurchasesinJanuary(net) 42,600

64,000Merchandiseavailableforsale $62,000 $100,000

RetailInventoryMethodStep3: Calculatetheestimatedinventoryatcost.Merchandiseinventory,January31,atcost ($30,000x62%) $18,600SalesforJanuary(net) 70,000Merchandiseinventory,January31,atretail $30,000

Cost

RetailMerchandiseinventory,Jan.1 $19,400 $36,000PurchasesinJanuary(net) 42