英文版財務(wù)會計課件第五章-wenkub.com
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【正文】 average cost. 6. Compare and contrast the use of the three inventory costing methods. 7. Compute the proper valuation of inventory at other than cost, using the lowerofcostormarket and realization value concepts. 8. Prepare a balance sheet presentation of merchandise inventory. Objectives 9. Estimate the cost of inventory, using the retail method and the gross profit method. 10. Compute the interpret the inventory turnover ratio and number of days’ sales in inventory. Objectives Why is Inventory Control Important? ? Inventory is a significant asset and for many panies the largest asset. ? Inventory is central to the main activity of merchandising and manufacturing panies. ? Mistakes in determining inventory cost can cause critical errors in financial statements. ? Inventory must be protected from external risks ( such as fire and theft) and internal fraud by employees. Receiving report Purchase order Invoice AGREE JOURNAL Description Nov. 9 Post. Ref. Date Inventory 1 222 00 Accounts PayableXYZ Co. 1 222 00 Purchased merchandise on account. LIABILITIES OWNER’S EQUITY REVENUES ASSETS COSTS amp。 Copyright 2022 SouthWestern, a division of Thomson Learning. All rights reserved. Task Force Image Gallery clip art included in this electronic presentation is used with the permission of NVTech Inc. Some of the action has been automated, so click the mouse when you see this lightning bolt in the lower righthand corner of the screen. You can point and click anywhere on the screen. 1. Summarize and provide examples of internal control procedures that apply to inventories. 2. Describe the effect of inventory errors on the financial statement. 3. Describe the three inventory cost flow assumptions and how they impact the ine statement and balance sheet. 4. Compute the cost of inventory under the perpetual inventory system, using the following cost methods: firstin, firstout。 lastin, firstout。 EXPENSES Effect of Inventory Errors on Financial Statements Merchandise Inventory Cost of Merchandise Sold If merchandise inventory is . . . . . . . Cost of merchandise sold is . . . . . . Gross profit and ine are . . . Ending owner’s equity is . . . . . . . . . overstated understated overstated overstated Net Ine If merchandise inventory is . . . . . . . Cost of merchandise sold is . . . . . . Gross profit and ine are . . . Ending owner’s equity is . . . . . . . . . understated overstated understated understated Effect of Inventory Errors on Financial Statements Purchased goods Sold goods Inventory Cost Flow Assumptions Purchased goods Sold goods Inventory Cost Flow Assumptions Purchased goods Sold goods Inventory Cost Flow Assumptions Inventory Costing Methods 40% 30% 20% 10% 0% 43% 34% 19% 4% Fifo Lifo Average Other Perpetual Inventory Costs Inventory cost data to demonstrate FIFO and LIFO Perpetual Systems Cost of Mdse. Sold Item 127B Units Cost Price Jan. 1 Inventory 10 $20 4 Sale 7 $30 10 Purchase 8 21 22 Sale 4 31 28 Sale 2 32 30 Purchase 10 22 Item 127B FIFO Perpetual Inventory Account Purchases Cost of Mdse. Sold Inventory Balance Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost Jan. 1 10 20 200 The firm begins the year with 10 units of Item 127B on hand at a total cost of $200. Inventory cost data to demonstrate FIFO and LIFO Perpetual Systems Cost of Mdse. Sold Item 127B Units Cost Price Jan. 1 Inventory 10 $20 4 Sale 7 $30 10 Purchase 8 21 22 Sale 4 31 28 Sale 2 32 30 Purchase 10 22 FIFO Perpetual Inventory Account On January 4, 7 units of Item 127B are sold at $30 each. Item
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