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Accounting chap 5 vocab - Vocab Chapter 5 Cost of goods...

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Vocab Chapter 5 Cost of goods available for sale – beginning inventory plus cost of goods purchased. Cost of goods sold – cost of goods available for sale minus ending inventory. FIFO method – an inventory costing method that assigns the most recent costs to ending inventory. Finished goods – a manufacturer’s inventory that is complete and ready for sale. FOB destination point – terms that require the seller to pay for the cost of shipping the merchandise to the buyer. FOB shipping point – terms that require the buyer to pay for the shipping costs. Gross profit – net sales less cost of goods sold; gross margin. Gross profit method – a technique used to establish an estimate of the cost of inventory stolen, destroyed, or otherwise damaged or of the amount of inventory on hand at an interim date. Gross profit ration – gross profit divided by net sales.
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