中外比较会计ch6.pptVIP

Vocabulary merchandise inventory 商品存货 beginning inventory 期初存货 ending inventory 期末存货 physical count 实地盘存 consignment 寄销 goods in transit 在途存货 installment sales 分期收款销售 1. What’s Inventory Goods held for sale in the normal course of business and, in the case of a manufacturer , goods in the process of production or to be placed in production. Merchandising firm :merchandise inventory Manufacturing firm :raw material ,work in process,finished goods What’s included in Inventory costP260/155 Inventory cost is the sum of all the costs incurred to bring inventories into condition and location for sale or for use. Determination of Inventory Costs Price paid or consideration given Freight-in 运入运费 Receiving Unpacking Inspecting Storage Insurance Sales and other applicable taxes Purchases + Freight-in - Purchases Returns and Allowances - Purchases Discounts Taken = Net Purchases Income effects of Inventory costing methods P266/161 A comparison of inventory methods (P267/162) LIFO best matches the current value of cost of goods sold (P267/162) And during periods of high inflation(通货膨胀）, income tax is lowest under LIFO. (P267/162) But it allows managers to manage reported income– up or down (P268/163) LIFO liquidation: inventory quantities fall below the level of the previous period under LIFO. FIFO reports the most current inventory costs on the balance sheet. (P267/162) And during periods of inflation(通货膨胀）, FIFO is sometimes criticized because it overstates income. (P267/162) FIFO remains the most popular inventory method in the United States. (P267/162) International perspective (P268/163) Virtually all countries permit FIFO and the weighted-average cost method. LIFO used by country (P268/163) Country LIFO Permitted? Country LIFO Permitted? Australia No Netherlands Yes Brazil Yes Nigeria NO Canada Yes Singapore NO Fra