TAILIEUCHUNG - Lecture Financial accounting (8/e): Chapter 7 - Robert Libby, Patricia A. Libby, Daniel G. Short

Chapter 7 - Reporting and interpreting cost of goods sold and inventory. After studying this chapter, you should be able to: Apply the cost principle to identify the amounts that should be included in inventory and the matching principle to determine cost of goods sold for typical retailers, wholesalers, and manufacturers; report inventory and cost of goods sold using the four inventory costing methods; decide when the use of different inventory costing methods is beneficial to a company. | Chapter 7 Reporting and interpreting cost of goods sold and inventory McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7: Reporting and Interpreting Cost of Goods Sold and Inventory Understanding the Business Provide sufficient quantities of high-quality inventory. Minimize the costs of carrying inventory. Primary Goals of Inventory Management The primary goals of inventory management are to have sufficient quantities of high-quality inventory available to serve customers’ needs while minimizing the costs of carrying inventory such as production, storage, obsolescence, and financing. Low quality inventory leads to customer dissatisfaction, returns, and decline in future sales. Also, purchasing or producing too few units can cause stock-outs that mean lost sales revenue and decreased customer satisfaction. Conversely, purchasing too many units increases storage costs as well as interest costs to finance the purchases. It may even lead to losses if the merchandise cannot be sold at normal prices. Items Included in Inventory Raw Materials Work in Process Finished Goods Merchandise Inventory Merchandisers Manufacturing Inventory is tangible property held for sale in the normal course of business or used in producing goods or services for sale. Merchandisers (wholesale or retail businesses) hold merchandise inventory, which is goods (or merchandise) held for resale in the normal course of business. The goods usually are acquired in a finished condition and are ready for sale without further processing. Manufacturing businesses hold three types of inventory: Raw materials inventory: Items acquired for processing into finished goods. These items are included in raw materials inventory until they are used, at which point they become part of work in process inventory. Work in process inventory: Goods in the process of being manufactured but not yet complete. When completed, work in process inventory becomes finished goods .

• Kế toán - Kiểm toán
• Financial accounting
• Lecture Financial accounting
• Accounting system
• Interpreting cost
• Goods sold
• Flow of inventory costs
• Issues in financial accounting
• Kế toán tài chính
• Financial statements
• Accounting standards
• Financial reporting
• Financial Accounting Standards Board
• Fundamental financial accounting
• Lecture Fundamental financial accounting concepts
• Financial statement
• Accounting cycle
• Accounting for accruals
• Accounting activities
• Financial accounting practice
• Accounting information system
• Accounting terminology
• Reporting financial results
• Evaluating liquidity
• Business firms
• The financial reporting reform
• Accounting information
• Management accounting
• Accounting equation
• Accounting systems
• Decision making
• External financial reporting
• Accounting for business
• Lecture Accounting for business
• Financial accounting reports
• Statement of financial performance
• Accrual accounting systems
• Statement of financial position
• Mastering financial accounting essentials
• Financial accounting essentials
• Accrual accounting
• Income statement
• Accounting conventions
• Internal control
• Accounting for cash
• Accounting for receivables
• Computing uncollectible accounts expense
• Long term debt
• Accounting for long term debt
• Paper F3
• Revision kit 2016
• Accounting Financial
• Accounting Financial Review
• Financial Review accounting exam
• Study text 2016
• Language of business
• Double entry accounting system
• Credit terminology
• Merchandising businesses
• Accounting for merchandising businesses
• Accounting for inventories
• Cash discounts
• The accounting cycle
• International financial reporting standards
• Completing the accounting cycle
• Accounting worksheet
• Classified balance sheet