会计英语4

• P205 case
Байду номын сангаас
Units Beginning Inventory First purchase Second purchase Third purchase 50 60 70 80
Cost per Unit $10 20 30 40
Total
• Assume that the ending inventory of 100 units can be identified as 10 units from the beginning inventory,20 units from the first purchase, 30 units from the second purchase,40 units from the third purchase. • Ending inventory • Cost of goods available for sale • Cost of goods sold
inventory turnover
• It is computed as cost of goods sold divided by average inventory and tells how many times during the period the company turned over ,or replenished its inventory.
Inventory systems
Periodic inventory system Inventory systems Perpetual inventory system 实地盘存制
永续盘存制
Periodic inventory system is that the cost of good sold and ending inventory balance are determined only at the end of each accounting period.
Inventory Estimation Method
• Gross profit method 毛利率法 • A gross profit percentage: (Sales－Cost of goods sold) ／Sales Cost Sales • Retail inventory method 零售价格法 • Cost-to-retail percent: Goods available for sale at cost／ Goods available for sale at retail
P201 exhibit 6-2
key words
Specific identification method 个别认定法 Average cost flow assumption 加权平均法 Weighted-average method 全月一次加权平均 Moving-average method 移动加权平均 First-in ,first-out method (FIFO)先进先出法 Last-in , first-out method (LIFO)后进先出法
In china ,when inventory issuing, firms may account them under the following methods: first-in first-out, weighted average ,moving average, specific identification,etc.
• Net realizable value 可变现净值 • Loss due to market decline of inventory 存货减值损失 • Provision for decline in value of inventory 存货跌价准备
Loss due to market decline of inventory Provision for decline in value of inventory
For most high-volume ,low-priced business inventories ,most companies use one of the following three cost flow assumptions.
• Average cost flow assumption • FIFO • LIFO
Inventory errors
• Errors in the inventory count will cause the amount of cost of goods sold or inventory shrinkage to be misstated.
Lower of Cost or Market (LCM) Method
specific identification method
• The specific identification method determines the cost allocation according to the physical inventory flow. • When inventory is composed of a great many items or identical items acquired at different times and at different prices ,specific identification is likely to be slow ,burdensome ,and costly.
keywords
Raw materials 原材料 Work in process 生产成本 Finished goods 完工产品 Work-in-process inventory 在产品 Manufacturing overhead 制造成本
For a manufacturing firm, there are three types of inventory
Having selected an inventory method , a company should follow it consistently from year to year and can not change from one acceptable accounting method to another arbitrarily.
1, raw materials. 2,work in process 3,finished goods
The cost consists of the invoice price , transportation-in , insurance while in transit and other expense for the goods to the place of business.
Perpetual inventory system updates the merchandise inventory account after each purchase and after each sale. As long as all entries have been posted, the account shows the current amount of inventory on hand.
Periodic inventory system
• The special identification method. beginning inventory plus purchases equal cost of goods available for sale less ending inventory equal cost of goods sold
Topic
4
Inventories and
cost of goods sold
What is inventory
• Inventories are finished goods or merchandise held by an enterprise for sale in the ordinary course of business ,or work in progress in the process of production for such sale ,or in the form of materials or supplies to be consumed in the production process or in the rendering of services.
specific identification method
• When inventory is composed of a great many items or identical items acquired at different times and at different prices ,specific identification is likely to be slow ,burdensome ,and costly.
inventory cost flow assumption
• Remember that the cost flow assumption is an assumption made for accounting purposes and may have no connection with the actual physical flow of goods.