Ch 8 Inventory V2.1

Ch 8 Inventory V2.1 - Inventory Chapter 8 1 Inventory...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Inventory Chapter 8 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 Inventory Introduction Definition Inventory categories Accounting guidance Inventory under the lower of cost and NRV model Other Inventory Issues Inventory errors Estimating inventory Recognition and Measurement Physical goods included in inventory Costs included in inventory cost Inventory accounting systems Cost formulas Lower of cost and net realizable value Recognition of inventory costs as an expense Exceptions to the lower of cost and NRV model Presentation, Disclosure, and Analysis Presentation and disclosure of inventories Analysis IFRS / Private Entity GAAP Comparison Comparison of IFRS and private entity GAAP Looking ahead
Background image of page 2
3 Inventory Introduction Definition Inventory categories Accounting guidance Inventory under the lower of cost and NRV model Other Inventory Issues Inventory errors Estimating inventory Recognition and Measurement Physical goods included in inventory Costs included in inventory cost Inventory accounting systems Cost formulas Lower of cost and net realizable value Recognition of inventory costs as an expense Exceptions to the lower of cost and NRV model Presentation, Disclosure, and Analysis Presentation and disclosure of inventories Analysis IFRS / Private Entity GAAP Comparison Comparison of IFRS and private entity GAAP Looking ahead
Background image of page 3

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

View Full DocumentRight Arrow Icon
4 Inventory Definition of Inventory: Inventories are “assets: (a) held for sale in the ordinary course of business; (b) in the process of production for such sale; or (c) in the form of materials or supplies to be consumed in the production process or in the rendering of services.”
Background image of page 4
5 Inventory Classification Inventory is classified as a current asset A merchandising company: has one inventory account on the balance sheet called Merchandise Inventory; the cost of the inventory sold is transferred to Cost of Goods Sold (COGS) on the income statement A manufacturing company: will normally have three inventory accounts on the balance sheet: raw materials, work in process and finished goods; Cost of Goods Manufactured (COGM) is used by a manufacturer which is similar to the COGS
Background image of page 5

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

View Full DocumentRight Arrow Icon
6 Inventory Cost Flows   Manufacturing Operations $$$ COGM $$$ Raw Materials Direct Labour Mfg. Overhead COGS $$$ Work in Process Inventory Finished Goods COGS
Background image of page 6
Inventory Introduction Definition Inventory categories Accounting guidance Inventory under the lower of cost and NRV model Other Inventory Issues Inventory errors Estimating inventory Recognition and Measurement Physical goods included in inventory Costs included in inventory cost Inventory accounting systems Cost formulas Lower of cost and net realizable value Recognition of inventory costs as an expense Exceptions to the lower of cost and NRV model Presentation, Disclosure, and Analysis Presentation and disclosure
Background image of page 7

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

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 53

Ch 8 Inventory V2.1 - Inventory Chapter 8 1 Inventory...

This preview shows document pages 1 - 8. Sign up to view the full document.

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