7.docx - Chapter 6 INVENTORIES Classifying Inventory o...

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2/23/28 & 2/28/18 Chapter 6. INVENTORIES Classifying Inventory o Classifying inventory Merchandising company Inventory Manufacturing company Raw materials Work in process Finished goods o Determining inventory quantities Perpetual system Check accuracy of inventory records Determine amount of inventory lost due to wasted raw Periodic system Determine inventory on hand Determine the cost of goods sold for the period Taking a physical inventory Counting/weighing/measuring inventory when business is close/slow, at the end of the accounting period Determine ownership of goods Goods in transit Purchased goods not yet received Sold goods not yet delivered Consigned goods Hold goods of other parties, try to sell the goods for them for a fee, and w/o taking ownership of the goods Car, boat, antique dealers sell goods on consignment=>to avoid the risk of purchasing an item it cannot sell Inventory Costing o
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