operating cycle.Inventories会计英语课件 复旦大学出版社.ppt

1. Inventory Cost Flow Assumptions 2. Perpetual Inventory Costing Methods 3. Periodic Inventory Costing Methods 4. Comparing Inventory Costing Methods 5. Inventory Valuation Other Than Cost 6. Balance Sheet Presentation of Merchandise Inventory Classification and Systems Inventory Classification and Systems Basic Issues in Inventory Valuation Physical Goods Included in Inventory ―Goods in transit （在途商品） For goods in transit, the party (seller or buyer) who has title to the goods on the inventory date is the owner. As we learn, shipping terms determine when title passes. when goods are purchased or sold FOB shipping point, title passes to the buyer when goods are shipped. When the terms are FOB destination, title passes to the buyer when goods are delivered. ―Goods on consignment （代销品） Manufacturers sometimes ship goods to retailers who act as the manufacturer’s agent when selling the goods. The manufacturer retains title until goods are sold. Such goods is said to be shipped on consignment (以托销方式)to retailers. The consigned goods should not be included in the retailer’s (consignee’s 受托者，代销人) inventory.　 Effect of Inventory Errors Effect of Inventory Errors Costs Included in Inventory Inventory cost flow assumption Assume you own a company called Middleman, Inc. You buy a gadget from the Gadget Manufacturing Company for $50. You put a price of $90 on the gadget and make it available for sale to your customers. Thus, the product “flows” from the manufacturer to your company and then to your customer. This represents the “reality” of the movement of the inventory. Physical Movement of Goods When the gadgets小配件/小机械 and other products “flow through” your company, you may desire that they do it in a particular order. In some cases, the newest goods should be sold first, and in other cases the oldest goods should be sold first, and possibly it doesn’t make any difference at all. FIFO and LIFO If you sell the gadgets in the same order that you purchase them, you