Merchandising firms examples include jc penney sears

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9 Merchandising Firms Examples include JC Penney, Sears, Kroger, Office Depot, Staples,… These firms Sell substantively the same product they purchase. Carry inventory to make goods available in the quantities, varieties and delivery schedules demanded by customers LO 3: Discuss how inventories affect the flow of costs in merchandising firms.
10 Inventory Equation Need to flow costs via inventory account Cost of purchase is NOT the cost of goods sold We can capture flow as: Cost of beginning inventory + Cost of goods purchased during the period Cost of ending inventory = Cost of goods sold (COGS) during the period Make inventory cost flow assumption First In First Out (FIFO) Last In First Out (LIFO) LO 3: Discuss how inventories affect the flow of costs in merchandising firms.
11 Flow of Costs in Merchandising LO 3: Discuss how inventories affect the flow of costs in merchandising firms. Transportati on in, stocking
12 Manufacturing Firms Use labor and equipment to transform raw materials into finished goods Have work-in-process Need inventory accounts for all three kinds of stages in the production process Much variation in Nature of production process Relative amounts of different costs LO 4: Explain the cost terminology and the flow of costs in manufacturing firms.
13 LO 4: Explain the cost terminology and the flow of costs in manufacturing firms. Cost Terms in Manufacturing
14 Names for Groups of Costs LO 4: Explain the cost terminology and the flow of costs in manufacturing firms.

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