ch6_summary

ch6_summary - Inventory xxxxx How do you know what the cost...

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Click to edit Master subtitle style ACG 2021 Chapter 6 – Inventory Summary
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Formula - 1 n    Beginning Inventory n + Purchases n -------------------------------- n    Goods Available for Sale n -  Ending Inventory n --------------------------------- n    Cost of Goods Sold
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Formula - 2 n    Beginning Inventory n + Purchases n -------------------------------- n    Goods Available for Sale n -  Cost of Goods Sold n --------------------------------- n    Ending Inventory
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Formula - 3 n   Sales n - Cost of Goods Sold n ------------------------- n   Gross Profit n Ratio: Gross Profit % n Gross Profit / Sales
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Inventory Transactions n Purchase Inventory Inventory xxxxx Cash or A/P     xxxxx n Sale of Inventory Cash or A/R xxxx Sales               xxxxx Cost of Goods Sold xxxx
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Unformatted text preview: Inventory xxxxx How do you know what the cost is? CGS/Inventory Cost n Specific Unit n Each inventory item can be uniquely identified n Average Cost n FIFO n First In First Out n Sold Units cost (CGS) determined by 1st units purchased n Ending Inventory cost determined by last Inventory Accounting n Lower of Cost or Market n Market = Replacement Cost n If Replacement Inventory < Inventory Cost n Adjust Ending Inventory (doesnt matter which method was used to compute cost) n Reduce Inventory Balance n Increase CGS Balance CGS xxxx Ratios n Gross Profit % n Gross Profit / Sales n Inventory Turnover n Cost of Goods Sold / Average Inventory...
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ch6_summary - Inventory xxxxx How do you know what the cost...

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