F2-Chapter6-吉.pptVIP

Chapter Preview Exam guide Material costs is another key area of the syllabus so expect questions on this topic. Make sure you understand and can use the EOQ formula. It will be given to you in the exam. Inventory Categories Merchandise Inventory Goods acquired for resale Manufacturing Inventory Raw materials(原材料） Work in process（在产品） Finished goods（产成品） Spare parts/consumables（备品备件） The importance of inventories Inventory control procedures Order, receipt and issue of raw materials Order, receipt and issue of raw materials Materials Requisition Note(领料单)– What information must be recorded on it? Materials Transfer Note(转用单) Materials Returned Note(退料单) Accounting for materials Free inventory The inventory count (stocktaking) Why? --to disclose the discrepancies between the physical amount and the amount shown in the records How? Periodic stocktaking 定期清查 Continuous stocktaking 持续清查 Inventory Systems Perpetual inventory system(永续/帐面盘存制)Gives a continual record of every receipt and issue of inventory as it occurs on bin cards and stores ledger accounts. Periodic inventory system(定期/实地盘存制)Requires updating the inventory account only at the end of the period. Physical count of inventory to determine the volume of inventory issued. Inventory control levels To maintain accurate records of inventory Visual methods of inventory control Theoretical methods of inventory control Reorder level Minimum level Maximum level Costs associated with inventory Economic order quantity Economic order quantity Economic batch quantity Used when inventory replenished gradually internally or; from supplier Similar to EOQ but factors in replenishment rate Total EBQ never held in inventory – as inventory is being replenished during the period Economic batch quantity Available above a certain order quantity Is it worth ordering above the EOQ to get the discount? EOQ with bulk discounts Four steps: Calculate EOQ in the normal way. (ignoring discounts) Calculate total annual costs