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Unformatted text preview: * Cost – all actions taken to sell b) If goods can not be sold. .. * Not included in inventory II. Determining inventory costs A. Includes all expenditures necessary to bring an item to a salable condition and location B. Net cost of purchases = invoice cost – returns – discounts and allowances + insurance costs + storage costs (if applicable) + import duties C. Perpetual system 1. Balance sheet: assets are reported in the form of ending inventory 2. Income statement: COGs are reported 3. Matching principle requires matching costs of sales with sales made and revenuse of sales with expenses made to get those revenues 4. Costing method...
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- Fall '10
- insurance costs, FOB shipping point, Ownership transfers, Determining inventory costs, B. Special attention