RSM220H1 Lecture Notes - Lecture 8: Gross Margin, Retained Earnings, Internal Control
Document Summary
Inventory key issues cut-o physical goods to include? what and when? related to revenue recognition. Cr inv. selling cost (period cost -> sg&a) ship from warehouse to customers. Aspe choose to capitalize or expense but disclosure needed for both e. g. boeing (large capital company) 3-yr -> 100m -> 40m for production, 60m for expanding. 60m to pp&e purchase discounts purchase - purchase discount = net purchase beg. Fifo average cost: are we using perpetual or periodic? periodic. 60[(50+60+70)/3] item by item basis given you a lower ending inventory? grouping inventory indirect method when recovery, if there is an allowance account, can dr you cannot allow the allowance to be negative e ects of items of accounts. Re loss? for intermediate partial nancial report gross method. Bi + net purchase - cogs = ei keep track of? sales purchases -> periodic. Cogs/inventory -> perpetual using sales to estimate cogs gross margin.
