inventory Flashcards
Purchases - Net of Discounts, Freight, Warehouse expenditures
Inventory
FOB Shipping Point puts the inventory into the hands of the buyer from the loading dock
Inventory
FOB Destination keeps the items in the seller’s inventory until it reaches the buyer
Inventory
Sales Commissions
Interest on liabilities to vendors
Shipping expense to customers
Inventory
Under the gross method, discounts are recorded only when used.
Inventory
Under the net method, discounts are recorded whether used or not.
Unused discounts are allocated to financing expense.
Inventory
Gross Margin : Sales - COGS (BI + P - EI)
Inventory
Inventory is counted at certain times throughout the period
Weighted-average cost flow method is used.
Inventory
Inventory count continually updated
Uses a moving-average cost flow method
Inventory
Under the FIFO system, periodic and perpetual inventory methods will both have the same ending inventory.
Inventory
COGS / Average Inventory
Inventory
365 / Inventory Turnover
Inventory
The CONSIGNOR holds the consigned items in their inventory count. The cost includes the shipping to the consignee.
Inventory
No. Consignment goods are maintained in the inventory of the consignor, not the consignee.
Inventory
Misstatement of beginning inventory does NOT have an effect on ending retained earnings.
Misstatement of ENDING inventory does have an effect on retained earnings.
Inventory