mba会计教材培训资料课件.ppt

Last-In, First-Out Method(LIFO) Costs of Goods Sold Recent Costs Ending Inventory Oldest Costs 第六十三页，共七十八页。 LIFOExample Remember: Start with beginning inventory and then add other purchases until you reach the number of units in ending inventory. 第六十四页，共七十八页。 LIFOExample 第六十五页，共七十八页。 LIFOExample Now, we have allocated the cost to all 1,200 units in ending inventory. Next, let’s complete the table. 第六十六页，共七十八页。 LIFOExample 第六十七页，共七十八页。 Importance of an Accurate Valuation of Inventory An error in ending inventory in a year will result in the same error in the beginning inventory of the next year. 第六十八页，共七十八页。 For interim financial statements, we may need to estimate ending inventory and cost of goods sold. 第六十九页，共七十八页。 The Gross Profit Method Determine cost of goods available for sale. Estimate cost of goods sold by multiplying the net sales by the cost ratio. Deduct cost of goods sold from cost of goods available for sale to determine ending inventory. 第七十页，共七十八页。 The Gross Profit Method Example In March of 1999, Chemico’s inventory was destroyed by fire. Chemico’s normal gross profit ratio is 30% of net sales. At the time of the fire, Chemico showed the following balances: 第七十一页，共七十八页。 The Gross Profit Method Example Estimate Cost of Goods Sold. 第七十二页，共七十八页。 FIFO Example Cost of Goods Sold for August 31 = $2,600 第三十一页，共七十八页。 FIFO Example Balance Sheet Inventory = $1,420 Income Statement COGS = $4,570 第三十二页，共七十八页。 Last-In, First-Out Method(LIFO) Costs of Goods Sold Recent Costs Ending Inventory Oldest Costs 第三十三页，共七十八页。 On August 14, TBC sold 20 bikes for $130 each. LIFOExample Continue 第三十四页，共七十八页。 LIFOExample The Cost of Goods Sold for the August 14 sale is $2,045, leaving $455 and 5 units in inventory. Continue Let’s look at the entries for the Aug. 14 sale. 第三十五页，共七十八页。 LIFOExample Retail Cost Continue A similar entry is made after each sale. 第三十六页，共七十八页。 LIFOExample Additional purchases were made on August 17 and August 28. On August