TAILIEUCHUNG - Lecture Financial and managerial accounting (2nd Edition): Chapter 6 - Weygandt, Kimmel, Kieso

Chapter 6 - Inventories. This chapter’s objectives are to: Describe the steps in determining inventory quantities, explain the accounting for inventories and apply the inventory cost flow methods, explain the financial effects of the inventory cost flow assumptions. | Inventories 6 Learning Objectives Discuss how to classify and determine inventory. Apply inventory cost flow methods and discuss their financial effects. Indicate the effects of inventory errors on the financial statements. 3 Explain the statement presentation and analysis of inventory. 2 1 4 One Classification: Inventory Three Classifications: Raw Materials Work in Process Finished Goods Merchandising Company Manufacturing Company Helpful Hint Regardless of the classification, companies report all inventories under Current Assets on the balance sheet. LO 1 Classifying Inventory LEARNING OBJECTIVE Discuss how to classify and determine inventory. 1 LO 1 Physical Inventory taken for two reasons: Perpetual System Check accuracy of inventory records. Determine amount of inventory lost due to wasted raw materials, shoplifting, or employee theft. Periodic System Determine the inventory on hand. Determine the cost of goods sold for the period. Determining Inventory Quantities LO 1 Involves counting, weighing, or measuring each kind of inventory on hand. Companies often “take inventory” when the business is closed or business is slow. at the end of the accounting period. TAKING A PHYSICAL INVENTORY Determining Inventory Quantities LO 1 LO 1 GOODS IN TRANSIT Purchased goods not yet received. Sold goods not yet delivered. DETERMINING OWNERSHIP OF GOODS Goods in transit should be included in the inventory of the company that has legal title to the goods. Legal title is determined by the terms of sale. Determining Inventory Quantities LO 1 Illustration 6-2 Terms of sale GOODS IN TRANSIT Ownership of the goods passes to the buyer when the public carrier accepts the goods from the seller. Ownership of the goods remains with the seller until the goods reach the buyer. Determining Ownership of Goods LO 1 Goods in transit should be included in the inventory of the buyer when the: public carrier accepts the goods from the seller. goods reach the buyer. terms of sale are FOB .

• Kế toán - Kiểm toán
• Managerial accounting
• Financial and managerial accounting
• Determine inventory
• Inventory cost flow methods
• Financial statements
• Statement presentation
• Managerial accounting for managers
• Lecture Managerial accounting
• Profitability analysis
• Decision making
• Operations management majors
• Nonmanufacturing costs
• Classifications of costs
• Kế toán quản trị
• Managerial accounting information
• General cost classifi cations
• Product costs
• Process costing
• Standard costing systems
• Accounting information
• Managerial decision
• Process management
• Financial statement
• Cost concepts
• Managerial accounting basics
• Managerial cost
• Period costs
• Lecture Financial and managerial accounting
• Managerial decisions
• Financial accounting
• Dynamic business environment
• Reporting manufacturing activities
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Relevant costing
• Accounting activities
• Business activities
• Income statement
• Accounting cycle
• Accounting for merchandising operations
• Merchandising operations
• Capital budgeting decisions
• Time value of money
• Income taxes
• After tax cost