专业英语会计学Chap008.pptVIP

Continue Last-In, First-Out Method (LIFO) Additional purchases were made on Aug. 17 and Aug. 28. On Aug. 31, an additional 23 units were sold. Continue Last-In, First-Out Method (LIFO) Cost of Goods Sold for August 31 = $2,685 Balance Sheet Inventory = $1,260 Income Statement COGS = $4,730 Last-In, First-Out Method (LIFO) Once a company has adopted a particular accounting method, it should follow that method consistently, rather than switch methods from one year to the next. The Principle of Consistency This inventory arrived just in time for us to use it in the manufacturing process. Just-In-Time (JIT) Inventory Systems The primary reason for taking a physical inventory is to adjust the perpetual inventory records for unrecorded shrinkage losses, such as theft, spoilage, or breakage. Taking a Physical Inventory Reduces the value of the inventory. Obsolescence Adjust inventory value to the lower of historical cost or current replacement cost (market). Lower of Cost or Market (LCM) LCM and Other Write-Downsof Inventory Year End A sale should be recorded when title to the merchandise passes to the buyer. F.O.B. shipping point ? title passes to buyer at the point of shipment. F.O.B. destination point ? title passes to buyer at the point of destination. Goods In Transit In a periodic inventory system, inventory entries are as follows. Note that an entry is not made to inventory. Periodic Inventory Systems In a periodic inventory system, inventory entries are as follows. Periodic Inventory Systems The inventory on hand and the cost of goods sold for the year are not determined until year-end. Periodic Inventory Systems Specific identification LIFO Average cost FIFO We use one of these inventory valuation methods in a periodic inventory system. Periodic Inventory Systems Information for the Following Inventory Examples By reviewing actual purchase invoices, Computers, Inc. determines that the 1,200 mouse pads on hand at year-end have an actual total cost of $6,400