中级财务会计英文ch05

Chapter5-1Inventories:BasicValuationMethods&SpecialValuationMethodsChapter5IntermediateAccounting12thEditionKieso,Weygandt,andWarfieldPreparedbyCobyHarmon,UniversityofCalifornia,SantaBarbaraChapter5-21.Describehowinventoryaccountsareclassified.2.Explaintheusesofperpetualandperiodicinventorysystems.3.Identifyhowinventoryquantitiesaredetermined.4.Determinethecostofinventory.5.Computeendinginventoryandcostofgoodssoldunderspecificidentification,FIFO,averagecost,andLIFO.6.Explaintheconceptualissuesregardingalternativeinventorycostflowassumptions.7.Understanddollar-valueLIFO.8.ExplainadditionalLIFOissues.9.Understandinventorydisclosures.LearningObjectivesChapter5-310.Understandthelowerofcostormarketmethod.11.Explaintheconceptualissuesregardingthelowerofcostormarketmethod.12.Understandpurchaseobligationsandproductfinancingarrangements.13.Explainthevaluationofinventoryabovecost.14.Usethegrossprofitmethod.15.Understandtheretailinventorymethod.16.Explaintheconceptualissuesregardingtheretailinventorymethod.17.Understandthedollar-valueretailmethod.18.Understandtheeffectsofinventoryerrorsonthefinancialstatements.LearningObjectivesChapter5-4Typicallyrepresentthelargestcurrentassetofmanufacturingandretailfirms.Formanycompaniesinventoriesareasignificantportionoftotalassetsaswell.Inventorymethodsandmanagementpracticescanbecomeprofit-enhancingtools.ImportanceofInventoriesChapter5-5MerchandiseinventoryGoodsacquiredforresaleManufacturinginventoryRawmaterialsWork-in-processFinishedgoodsManufacturingsuppliesMiscellaneousinventoryInventoryCategoriesChapter5-6FlowofInventoryCostsMerchandisingCompanyManufacturingCompanyChapter5-7MerchandisingCompanyCostofGoodsSoldAccountsPayable(orCash)MerchandiseInventoryGoodsPurchasedGoodsSoldFlowofInventoryCostsChapter5-8ManufacturingCompanyAccountsPayable(orCash)RawMaterialsInventoryMaterialsPurchasedMaterialsUsedinProductionToWorkinProcessInventoryContinuedFlowofInventoryCostsChapter5-9ManufacturingCompanyDirectLaborActualDirectLaborManufacturing(Factory)OverheadActualMfg.Over-headOverheadAppliedtoProductionToWorkinProcessInventoryLaborChargedtoProductionToWorkinProcessInventoryContinuedFlowofInventoryCostsChapter5-10ManufacturingCompanyWorkinProcessInventoryMaterialsUsedDirectLaborOverheadAppliedFinishedGoodsInventoryGoodsFinished(Manufactured)GoodsSoldtoCostofGoodsSoldFlowofInventoryCostsChapter5-11GeneralRuleAllgoodsownedbythecompanyontheinventorydate,regardlessoftheirlocation.GoodsintransitdependontheFOBterms.Goodsonconsignment.ItemsIncludedinInventoryChapter5-12WhoOwnstheInventory?Chapter5-13InvoicepriceFreight-inPurchasediscountsOthercoststogettheinventoryreadyforsaleComponentsofInventoryCostChapter5-14Underthegrosspricemethod,acompanyrecordsthepurchaseatthegrossprice,andrecordstheamountofthediscountintheaccountingsystemonlyifthediscountistaken.Underthenetpricemethod,acompanyrecordsthepurchaseatitsnetprice,andrecordstheamountofthediscountintheaccountingsystemonlyifthediscountisnottaken.PurchasesDiscountsChapter5-15TorecordthepurchaseInventory(orPurchases)1,000AccountsPayable1,000Acompanypurchases$1,000ofgoodsundertermsof1/10,n/30.Torecordpaymentwithinthediscountperiod:AccountsPayable1,000PurchasesDiscountsTaken10Cash990Torecordpaymentafterthediscountperiod:AccountsPayable1,000Cash1,000PurchasesDiscounts-GrossPriceMethodChapter5-16Torecordthepurchase:Inventory(orPurchases)990AccountsPayable990Acompanypurchases$1,000ofgoodsundertermsof1/10,n/30.Torecordpaymentwithinthediscountperiod:AccountsPayable990Cash990Torecordpaymentafterthediscountperiod:AccountsPayable990PurchasesDiscountsLost10Cash1,000PurchasesDiscountsLostaretreatedasafinancingexpenseintheOthersectionoftheincomestatement.PurchasesDiscounts-NetPriceMethodChapter5-17NetPriceMethodAdjustingentryattheendofperiodifdiscounthasexpiredandinvoiceisunpaid:PurchasesDiscountsLost10AccountsPayable10Acompanypurchases$1,000ofgoodsundertermsof1/10,n/30.PurchasesDiscountsChapter5-18PERIODICMETHODvs.PERPETUALMETHODInventoryRecordingMethodsChapter5-19Acompanyusingaperiodicsystemdoesnotmaintainacontinuousrecordofthephysicalquantitiesonhand.AlternativeInventorySystemsChapter5-20BeginningInventory+Purchases(net)=CostofGoodsAvailableforSale-EndingInventory=CostofGoodsSoldCalculatingCostofGoodsSold(COGS)Chapter5-21Beginninginventory+Purchases(net)-GoodsSold=EndingInventoryPerpetualInventorySystemBeginninginventory+Purchases(net)-EndingInventory=GoodsSoldPeriodicInventorySystemComparisonofSystemsChapter5-22TransactionorEventPeriodicInventoryPerpetualInventoryRoutinepurchasesofvariousinventoryitemsCostsdebitedtopurchasesaccountCostsdebitedtoinventoryaccountItemsremovedfrominventoryforuseinproductionNoaccountingentriesmadeDebitWIPinventoryandcreditinventoryaccountEnd-of-periodaccountingentriesandrelatedactivitiesPhysicalcountofinventorytodeterminecostofgoodssoldNoseparatedeterminationofcostofgoodssoldnecessaryPeriodicversusPerpetualChapter5-23Attheendoftheaccountingperiod,calculateCOGSbyclosing:Purchases,PurchasesDiscount,PurchaseReturnsandAllowan