TAILIEUCHUNG - Lecture Intermediate accounting (16th edition): Chapter 8 - Kieso, Weygandt, Warfield

Chapter 8 - Valuation of inventories: A cost-basis approach. After studying this chapter, you should be able to: Identify major classifications of inventory, distinguish between perpetual and periodic inventory systems, identify the effects of inventory errors on the financial statements,. | PREVIEW OF CHAPTER 8 Intermediate Accounting 16th Edition Kieso ● Weygandt ● Warfield Understand inventory classifications and different inventory systems. Determine the goods and costs included in inventory. Describe and compare the cost flow assumptions used to account for inventories. LEARNING OBJECTIVES Identify special issues related to LIFO. Determine the effects of inventory errors on the financial statements. After studying this chapter, you should be able to: Valuation of Inventories: A Cost-Basis Approach 8 LO 1 Inventories are asset: items held for sale in the ordinary course of business, or goods to be used in the production of goods to be sold. Merchandiser Manufacturer Businesses with Inventory or Classification INVENTORY ISSUES LO 1 One inventory account. Purchase merchandise in a form ready for sale. Classification INVENTORY ISSUES ILLUSTRATION 8-1 Comparison of Presentation of Current Assets for Merchandising and Manufacturing Companies LO 1 Three accounts Raw Materials Work in Process Finished Goods Classification INVENTORY ISSUES ILLUSTRATION 8-1 Comparison of Presentation of Current Assets for Merchandising and Manufacturing Companies LO 1 ILLUSTRATION 8-2 Flow of Costs through Manufacturing and Merchandising Companies LO 1 Inventory Cost Flow Two types of systems for maintaining inventory records — perpetual system or periodic system. INVENTORY ISSUES ILLUSTRATION 8-3 Inventory Cost Flow LO 1 Perpetual System Purchases of merchandise are debited to Inventory. Freight-in is debited to Inventory. Purchase returns and allowances and purchase discounts are credited to Inventory. Cost of goods sold is debited and Inventory is credited for each sale. Subsidiary records show quantity and cost of each type of inventory on hand. The perpetual inventory system provides a continuous record of Inventory and Cost of Goods Sold. Inventory Cost Flow LO 1 Periodic System Purchases of merchandise are debited to Purchases. Ending Inventory determined by physical

• Kế toán - Kiểm toán
• Valuation of inventories
• Inventory issues
• Classifications of inventory
• Inventory systems
• Intermediate accounting
• Lecture Intermediate accounting
• Additional valuation issues
• Gross profit method
• Retail inventory method
• Valuation bases
• The valuation of inventories
• The cash book
• The trial balance
• Suspense accounts
• Partnership accounting
• A cost basis approach
• Identify major classifications
• Distinguish between perpetual
• Value inventories
• Accounting issues related
• Purchase commitments
• Financial accounting
• Issues in financial accounting
• Kế toán tài chính
• Financial statements
• Determine inventory
• Inventory cost flow methods
• Cost basis approac
• Physical goods included
• Cost flow assumptions