RSM220H1 Lecture Notes - Lecture 8: Current Asset
Document Summary
Raw materials, direct labor, and manufacturing overhead make up work in progress. Held for sale in ordinary course of business. In the process of production for such sale. In the form of materials or supplies to be consumed in the production process or in the rendering of services. Good sold with high rates of return that cannot be estimated. Commitment to purchase inventory but legal title has not yet been passed to buyer. Non-cancellable purchase contracts disclosed in notes if material but are not recorded. Unavoidable costs to complete contract are higher than expected benefits. Nrv is estimated selling price less costs of sale. Loss if nrv less then cost becomes part of cogs.
