ACTG 1P91 Lecture Notes - Lecture 17: Retained Earnings, Iphone 7, Ipad
3 Nov 2018
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To make our life easy, we assume that there is no income tax! This means any $ impact on cogs will reduce net income by the same amount. Important equation to remember for this table: bi+p-ei=cogs. By the end of year 2, errors in ei in year 1 are self-corrected, What to include in inventory: goods in transit. Under fob destination, seller should include goods in transit. Under fob shipping point, buyer should include goods in transit: consigned goods. Pianos in (cid:361)piano doctor(cid:362) in fenwick, on; magazines and newspapers in convenient stores. Consignee gets a commission upon the sale of goods, without taking ownership of the goods. Thus, consigners should include consigned goods even though goods are in the hands of consignee. 1 st gen i-pad; cost = ; sp = ; commission = . Upon the arrival of 2nd gen i-pad; sp = ; commission = . At 12/31, you still have 100 units of 1st get i-pad,
