Invent Flashcards
Two types of shipping terms
FOB shipping point
FOB destination
From the moment the goods leave the sellers place of business
From the moment the goods arrive at the purchasers receiving dock
Inventory accounting systems
Periodic inventory system
Perpetual inventory system
inexpensive goods, do NOT keep running record
all goods, DO keep a running record, software
Freight-in:
payed by:
Cost to transport the goods to buying company
buying company
debit memorandum(or memo)
refund - debit acc payable 100, credit invent 100
2/10, n/30 means
10% discount if within 10 days, normal price for 30 days
which invent costing methods is banhammered by IAS, and why
LIFO - focus is on balance sheet/valuation, not income
FIFO and LIFO
COGS and Ending Invent
FIFO (COGS, INVENT)
LIFO (INVENT, COGS)
LIFO vs FIFO priority
LIFO - accurate income
FIFO - accurate invent/valuation
what does net realized value do
Make sure that lowest cost is recorded. (estimated selling price - estimated cost)
Gross profit percentage
gross profit / sales
Inventory Turnover
COGS/AVG invent
avg invent = (beginning+ending/2)
Impairment test
Is the value recorded still realistic?
ex. intangibles with indefinite lives
