2012中级财务会计英文版第五章课件_存货F.pptVIP

本文观看结束！！！ 祝各位身体健康！万事如意！！ Financial Statement Summary Inventory Balance 30 25 35 Effects of FIFO, LIFO and Average Costs When inventory costs are increasing: LIFO cost of goods sold is highest. Gross profit is lowest. FIFO cost of goods sold is lowest. Gross profit is highest. When inventory costs are decreasing? Comparison of the Inventory Methods 1、LIFO best matches the current cost of goods sold with revenue. 2、FIFO reports the most up-to-date inventory cost on the balance sheet. 3、When prices are rising, LIFO results in the lowest income tax, but taxes are highest under FIFO. 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 Example – Perpetual and Periodic Methods Assuming the (1) Perpetual and (2) Periodic Inventory Method, compute the Cost of Goods Sold and Ending Inventory under FIFO, LIFO, and Average cost. Goods Available $19,100 Perpetual Inventory FIFO Method + Periodic Inventory FIFO Method + Perpetual Inventory LIFO Method + Periodic Inventory LIFO Method + Cost per unit sold is determined by dividing total inventory $ by total units on hand after each purchase. Perpetual Inventory Moving Average + Periodic Inventory Weighted Average + Market = Replacement Cost Lower of Cost or Replacement Cost Loss should be recorded when loss occurs, not in the period of sale. Lower-of-Cost-or-Market LCM requires that inventory be reported in the financial statements at whichever is lower—its historical cost or its market value. Consistent with the conservatismprinciple. Decline in the RC usually = decline in selling price. RC allows a consistent rate of gross profit. If reduction in RC fails to indicate reduction in utility, then two additional valuation limitations are used: Ceiling - net realizable va