MGAB01H3 Lecture Notes - Lecture 13: Gross Profit, Internal Control, Fixed Cost

• School: UTSC
• Department: Financial Accounting
• Course: MGAB01H3
• Professor: H Levy-Shalev

Document Summary

Chapter7 reporting and interpreting cost of sales and inventory: hw5 and quiz need to submit before sunday night, final: friday,21th dec, 9-11, different version for three different professors, periodic system easier to calculate. Why we need to study inventory for whole chapter: the way we use to measure the cost of inventory. Perpetual system: keep a running balance of inventory, cogs is based on every transaction. Periodic: count once at end of the period. * you can start from calculating 900 units ending balance by grabbing them from the newest inventory or start from cogs when using fifo. *wac= 3200/1400=2. 285 because we use periodic, we don"t care when we purchase and sale. We start from 0 bb, end by 0 inventory. No matter we use fifo or wac, eventually we get the same result. If you use wac, you will expect the shipment arrived at jan. 2. Sperate the job of recording and counting physical inventory.