Chapter 7 Reporting and Interpreting Cost of Goods Sold and Inventory_Notes

Chapter 7 Reporting and Interpreting Cost of Goods Sold and Inventory_Notes

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 – Reporting and Interpreting Cost of Goods Sold and Inventory Nature of Inventory and Cost of Goods Sold Inventory – tangible property held for sale in the normal corse of business or used in producing goods or services for sale Marchandise inventory – includes goods held for resale in the ordinary course of business Raw materials inventory – includes items acquired fo the purpose of processing into finished goods Work in process inventory – includes goods in the process of being manufactured Finished goods inventory – includes manufactured goods that are complete and ready for sale Direct labor – refers to the earnings of employees who work directly on the products being manufactured Factory overhead – are manufacturing costs that are not raw material or direct labor costs Goods available for sale – refers to the sum of beginning inventory and purchases (or transfers to finished goods) for the period Cost of Goods Sold Equation – BI + P – EI = COGS
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/20/2009 for the course AEM 221 taught by Professor Little,j. during the Fall '08 term at Cornell University (Engineering School).

Page1 / 2

Chapter 7 Reporting and Interpreting Cost of Goods Sold and Inventory_Notes

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online