文档介绍：7 Inventories
Accounting School · Zhongnan University of Economics & Law
ntermediate Accounting
I
中级会计学
1. Classifications of inventory
Intermediate Accounting 7 Inventories
Inventories are the assets of pany which are :
held for sale in the ordinary course of business,
in the process of production for sale, or
held for use in the production of goods or services to be made available for sale
Merchandise
Balance Sheet Items
e
Statement
Items
Retailer
Cost of Goods Sold
Sale
Manufacturer
Raw Materials
Cost of Goods Sold
Sale
Finished Goods
Work in Process
Overhead
Direct
Labor
Intermediate Accounting 7 Inventories
Inventory Types
2. Alternative inventory systems
Intermediate Accounting 7 Inventories
A perpetual inventory system provides for a continuous record of physical quantities in the inventory. pany using a perpetual system maintains a continuous record of the physical quantities in its inventory.
pany using the periodic inventory system does not maintain a continuous record of the physical quantities (or costs) of inventory on hand.
Periodic Inventory Systems
Intermediate Accounting 7 Inventories
Cost of Goods Sold is determined and Inventory is adjusted to proper balance at period end.
All purchases of inventoriable merchandise are recorded in the Purchases account.
Ending inventory is determined by physical count of merchandise on hand.
Perpetual Inventory Systems
Intermediate Accounting 7 Inventories
Cost of Goods Sold is determined and Inventory is adjusted to proper balance each time inventory is purchased or sold.
All purchases of inventoriable goods are recorded in the Inventory account.
Comparison of Systems
Intermediate Accounting 7 Inventories
Perpetual Inventory System
Beginning inventory
+ Purchases (net)
- Goods Sold
= Ending Inventory
Periodic
Inventory System
Beginning inventory
+ Purchases (net)
- Ending Inventory
= Goods Sold
3. Items to be included in inventory quantities
Intermediate Accounting 7