B Chapter 6 - BChapter6 CostofSalesandInventories...

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B Chapter 6 Cost of Sales and Inventories Types of Firms: Merchandising (Retail) Manufacturing Service Merchandise is recorded at cost Retail Firm: BI + Net Purchases -EI     COGS Periodic vs. Perpetual
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Retail Method-Example P. 153 Manufacturing Firm: Beginning and Ending Materials  Inventory + Conversion Costs (DL/FO) B and E WIP Inventory Beginning and Ending FG Inventory Inventory Costing Methods: Fifo Lifo AC Specific Identification LofCorM-P. 165
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Inventory Turnover: COGS/Inventory Cost of Goods Sold is a difficult issue for  most students. In general, it is the  beginning inventory, + net purchases  (purchases – purchases discounts and  purchases returns and allowances), -  ending inventory.  In a manufacturing firm, you have several  inventories (raw material, work in process,  and finished goods). Instead of purchases  you have the costs of manufacturing (direct 
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B Chapter 6 - BChapter6 CostofSalesandInventories...

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