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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- Fall '08
- Tanzola
- Accounting, retail inventory, FIFO and LIFO accounting
-
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