This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
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...
View Full Document
This note was uploaded on 02/09/2012 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.
- Fall '10