Final Study Guide ACC 321_Chapter 8

Final Study Guide ACC 321_Chapter 8 - Final Study Guide...

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Final Study Guide ACC 321 Chapter 8 Inventory Merchandising Concern o Only one inventory account Merchandise Inventory Manufacturing Concerns o 3 inventory accounts Raw Materials – goods on hand but not in production WIP – units partially processed Cost = raw materials + part of DL and manufacturing OH Finished Goods Completed but unsold units on hand Perpetual Inventory System o Continuously tracks changes in the inventory account as purchases and sales occur o Provides continuous record of balances in both COGS and Inventory Periodic Inventory System o Records all purchases during the accounting period by debiting the Purchases account o Total Cost of Goods Available for Sale = Total of purchases + Inventory from beginning o COGS = COGAS – Ending Inventory Goods in Transit o F.O.B. Shipping Point Title passes to Walgreens when supplier delivers goods to a common carrier (agent for Walgreens) o F.O.B. Destination Title passes to Walgreens when common carrier delivers goods to
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Final Study Guide ACC 321_Chapter 8 - Final Study Guide...

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