Unformatted text preview: t inventory
still belongs to consignor. Should be included as inventory on the balance sheet of consignor.
• Buyback arrangements or Out on Approval: No sale has occurred; Inventory should still be
included on the seller's balance sheet. 42 Inventory C: :hods GAAP allows for different inventory costing methods, to fairly allocate costs between ending inventory
and cost of goods sold. Needed because inventory costs can change dramatically over time, which could
have significant impacts on a company's financial statements. Only specific identification matches
physical flow of goods. Whatever cost flow assumption used, it must be used consistently from year to
• Specific identification: Cost of each item sold is individually identified and traced to...
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This note was uploaded on 01/22/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida.
- Spring '08
- Financial Accounting