Class Notes (888,148)
CA (531,420)
UTSG (45,528)
Rotman Commerce (1,103)
RSM220H1 (38)
Amy Kwan (6)
Lecture 8

RSM220H1 Lecture 8: Week 8 Inventory

1 Page

Rotman Commerce
Course Code
Amy Kwan

This preview shows half of the first page. Sign up to view the full page of the document.

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Week 8: Inventory March 12, 2018 Is a current asset Merchandising company has: One inventory account, Merchandise Inventory Cost of inventory sold transferred to COGS Manufacturing company has: Raw materials, work in progress, finished goods Raw materials, direct labor, and manufacturing overhead make up work in progress Work in progress flows to finished goods Expensed to Cost of Goods Manufactured Definition 1. Held for sale in ordinary course of business 2. In the process of production for such sale 3. In the form of materials or supplies to be consumed in the production process or in the rendering of services Included in inventory Generally determined by legal title 1. Goods in transit if f.o.b. destination 2. Goods out on consignment 3. Goods sold under buyback agreements 4. Good sold with high rates of return that cannot be estimated Purchase contracts Commitment to purchase inventory but legal title has not yet been passed to buyer Noncancellable purchase contracts disclosed in notes if material but are not recorded Record loss provision for onerous contracts Unavoidable costs to complete contract are higher than expected benefits Accounting for inventory 1. Perpetual system 2. Periodic system Cost formulas 1. Specific identification 2. Weighted average 3. FIFO Measurement Recorded of lower of cost and NRV Initially recorded at cost NRV is estimated selling price less costs of sale Loss if NRV less then cost becomes part of COGS
More Less
Unlock Document
Subscribers Only

Only half of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
Subscribers Only
You're Reading a Preview

Unlock to view full version

Unlock Document
Subscribers Only

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.