《会计学》课程教学资源（PPT课件讲稿）Chapter 08 Inventories and the Cost of Goods Sold

Chapter 8 Inventories and the cost of Goods sold Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999

?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 8 Inventories and the Cost of Goods Sold

Inventory Defined Inventory Goods owned and Current held for sale to asset customers Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc, 1999

?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Inventory Defined Goods owned and held for sale to customers Current asset Inventory

The Flow of Inventory Costs BALANCE SHEET Purchase cost (or manufacturing Current assets costs) as Inventory incurred as goods INCOME STATEMENT are sold Revenue Cost of goods sold Gross profit Expenses Net income Irwin/McGraw-Hill rme icoruw-Hill Companies, Inc., 1999

?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Flow of Inventory Costs BALANCE SHEET Current assets: Inventory INCOME STATEMENT Revenue Cost of goods sold Gross profit Expenses Net income Purchase cost (or manufacturing costs) as incurred as goods are sold

The Flow of Inventory Costs In a perpetual inventory system, inventory entries parallel the flow of costs GENERAL JOURNAL Date Account Titles and Explanation Debit Credit Entry on Purchase Date Invento $$$ Accounts Payable $$$$ Entry on Sale Date Cost of Goods sold SSSS Inventor $$$$

?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Flow of Inventory Costs GENERAL JOURNAL Date Account Titles and Explanation Debit Credit Entry on Purchase Date Inventory $$$$ Accounts Payable $$$$ Entry on Sale Date Cost of Goods Sold $$$$ Inventory $$$$ In a perpetual inventory system, inventory entries parallel the flow of costs

Which Unit Did We sell? Does It really Matter? When identical units of inventory have different unit costs, a question naturally arises as to which of these costs should be used in recording a sale of inventory GENERAL JOURNAL Date Account Titles and Explanation De bit Credit Entry on Sale Date Cost of Goods sold $$s Invento $$$$ Irwin/McGrau-Hill ?The McGraw-Hill Companies, Inc, 1999

?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Which Unit Did We Sell? Does It Really Matter? GENERAL JOURNAL Date Account Titles and Explanation Debit Credit Entry on Sale Date Cost of Goods Sold $$$$ Inventory $$$$ When identical units of inventory have different unit costs, a question naturally arises as to which of these costs should be used in recording a sale of inventory

Inventory Subsidiary ledger A separate subsidiary account is maintained for each item in inventory Item ll002 Primary supplier Electronic City Description Laser Light Secondary supplier Electric Company Location Storeroom 2 Inventory level: Min:__25 Max: _200 Purchased Sold Balance Cost of Unit Unit Goods Date Units Cost Total Units Cost Sold Units Cost Tota sept5100$30|$3,000 100$30$3,000 Sept 9 75 3,750 100 30 3,000 75 50 3,750 Sept10 10 ? How can we determine the unit cost for the Irwin/McGraw-Hill Sept 10 sale? ?The McGraw-Hill Companies, Inc, 1999

?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Inventory Subsidiary Ledger A separate subsidiary account is maintained for each item in inventory. How can we determine the unit cost for the Sept. 10 sale? Item LL002 Primary supplier Electronic City Description Laser Light Secondary supplier Electric Company Location Storeroom 2 Inventory level: Min: 25 Max: 200 Purchased Sold Balance Date Units Unit Cost Total Units Unit Cost Cost of Goods Sold Units Unit Cost Total Sept. 5 100 $ 30 $ 3,000 100 $ 30 $ 3,000 Sept. 9 75 50 3,750 100 30 3,000 75 50 3,750 Sept. 10 10 ? ? ? ? ? ? ? ?

To determine the cost of inventory sold, accountants use one of the following inventory valuation methods Specific Average identification cost FIFO LIFO Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999

?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Specific identification LIFO Average cost FIFO To determine the cost of inventory sold, accountants use one of the following inventory valuation methods

Information for the Following Inventory Examples The Bike Company (TBC) Cost of oods available for sale Aug. 1 Beg. Inventory 10 units 91 = 910 Aug. 3 Purchased 15 units@$106=$1,590 Aug. 17 Purchased 20 units@$115=$2,300 Aug. 28 Purchased 10 units@$119=$1,190 Retail sales of goods Aug. 14 Sales e 20 units@$ 130 = 2,600 Aug. 31 Sales 23 units@$150=$3,450 Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999

?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Information for the Following Inventory Examples Cost of Goods Available for Sale Aug. 1 Beg. Inventory 10 units @ $ 91 = $ 910 Aug. 3 Purchased 15 units @ $ 106 = $ 1,590 Aug. 17 Purchased 20 units @ $ 115 = $ 2,300 Aug. 28 Purchased 10 units @ $ 119 = $ 1,190 Retail Sales of Goods Aug. 14 Sales 20 units @ $ 130 = $ 2,600 Aug. 31 Sales 23 units @ $ 150 = $ 3,450 The Bike Company (TBC)

Specific Identification When units are sold the specific cost of the unit sold is added to cost of goods sold Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999

?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Specific Identification When units are sold, the specific cost of the unit sold is added to cost of goods sold

Specific Identification Example Inventory Date Purchases Cost of Goods sold Balance Aug. 110 $91=$910 910 Aug.3|15@$106=$1590 $2,500 On August 14, TBC sold 20 bikes for $130 each. Nine bikes originally cost $91 and 11 bikes originally cost $106 Continue Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc, 1999

?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Specific Identification Example On August 14, TBC sold 20 bikes for $130 each. Nine bikes originally cost $91 and 11 bikes originally cost $106. Continue Date Purchases Cost of Goods Sold Inventory Balance Aug. 1 10 @ $ 91 = $ 910 $ 910 Aug. 3 15 @ $ 106 = $ 1,590 $ 2,500