2012中级财务会计英文版第五章课件-存货F.pptVIP

;Identify major classifications of inventory. Distinguish between perpetual and periodic inventory systems. Understand the items to include as inventory cost. Describe and compare the cost flow assumptions used to account for inventories. Describe and apply the lower-of-cost-or-market rule.;;Inventories are asset items held for sale, or goods to be used in the production of goods to be sold.;Type of Business;Manufacturer;Flow of Costs;Two systems for maintaining inventory records:;Perpetual System ;Features:;Perpetual System ;Basic Issues in Inventory Valuation;A company should record purchases when it obtains legal title to the goods.;Errors in the amount of ending inventory have a direct dollar-for-dollar effect on cost of goods sold and net income.;Ending Inventory Understated;Purchases and Inventory Understated;Costs Included in Inventory;Net purchases;Treatment of Purchase Discounts;Answer: Method adopted should be one that most clearly reflects periodic income.;Young Crazy Company makes the following purchases: One item on 2/2/07 for $10 One item on 2/15/07 for $15 One item on 2/25/07 for $20 Young Crazy Company sells one item on 2/28/07 for $90. What would be the balance of ending inventory and cost of goods sold for the month ended Feb. 2007, assuming the company used the FIFO, LIFO, Average Cost, and Specific Identification cost flow assumptions? Assume a tax rate of 30%.;Purchase on 2/2/07 for $10;Purchase on 2/2/07 for $10;;Purchase on 2/2/07 for $10;Purchase on 2/2/07 for $10;Ending Inventory;Purchase on 2/2/07 for $10;Cost of Goods Sold;Financial Statement Summary;Effects of FIFO, LIFO and Average Costs;Comparison of the Inventory Methods;Inventory information for Part 686 for the month of June. June 1 Beg. Bal. 300 units @ $10 = $ 3,000 10 Sold 200 units @ $24 11 Purchased 800 units @ $12 = 9,600 15 Sold 500 units @ $25 20 Purchased 500 units @ $13 = 6,500 27 Sold 300 units @ $27;Perpetual Inventory;P