Chapter 15 Inventory.（课件）-《实用会计英语》同步教学（大连理工大学出版社）

INVENTORIES CHAPTER 15 15-1 2 2 Merchandise inventory Merchandise inventory consists of all goods that are owned and held for sale in the regular course of business, including goods in transit. All the items for sale The goods in stock for sale Supermarket Merchandising company 15-1 Merchandise inventory The Title of the merchandise passed to the company Purchased merchandise in transit should be included in the inventory count. 15-1 3 3 Merchandise inventory Outgoing goods Incoming goods FOB Destination FOB Shipping Point Merchandise inventory 15-1 Merchandise inventory Company A Consigned Company B Merchandise Title belongs to Company A Merchandise inventory ? ? 15-1 Beginning inventory and ending inventory At the beginning of the accounting period Merchandise inventory At the end of accounting period The beginning inventory The ending inventory The beginning inventory for the next accounting period 15-1 The cost of goods sold Formula Goods Available for Sale = Beginning Inventory + Net Purchases Purchases – Purchase Returns and Allowances – Purchase Discount + Freight In Cost of Goods Sold = Goods Available for Sale – Ending Inventory Gross Margin from Sales = Revenues from Sales – Cost of Goods Sold 15-1 The cost of goods sold The higher the cost of ending inventory, the lower the cost of goods sold will be and the higher the gross margin. Vice versa, the lower the ending inventory, the higher The cost of goods sold will be and the lower the gross margin. 15-1 Methods of Pricing Inventory at Cost Specific identification method Average-cost method First-in, first-out method Last-in, first-out method 15-1 4 3 Methods of Pricing Inventory at Cost Suppose that the following transactions happened in August， 2006. Date Item Quantity (Units) Unit price ($) Total ($) August 1 Beginning inventory 50 $2.00 100.00 6 Purchase 60 $2.20 132.00 17 Purchase 80 $2.40 192.00 20 Purchas