BU127 Lecture Notes - Lecture 12: Weighted Arithmetic Mean, Uptodate
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BU127 Full Course Notes
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Lecture 11 notes from luca, chapter 7. Items included in inventory - inventory tangible property held for sale in the normal course of business or used in producing goods or service for sale o merchandisers. Nature of cost of sales beginning inventory + purchase = goods available for sale goods available for. Sale ending inventory = cost of sales. Perpetual and periodic inventory systems - perpetual system o provides up-to-date inventory records o. Provides up-to-date cost of sales records - in a periodic inventory system, ending inventory and cost of sales are determined at the end of the accounting period based on a physical account. Perpetual - purchase transactions are recorded directly in an inventory account - sales require two entries to record: (1) the retail sale and (2) the cost of sales. No adjusting entry at the period end (updated over the period as they happen)
