ACCT 2101 Lecture Notes - Lecture 5: Weighted Arithmetic Mean, Financial Statement, Consignor

• School: University of Georgia
• Department: Accounting
• Course: ACCT 2101
• Professor: Bhandarkar

Document Summary

Items to include in inventory: merchandise inventory includes all goods that a company owns and holds for sale, regardless of where the goods are located when inventory is counted. Inventory on consignment: damaged or obsolete inventory. Inventory given by the owner (consignor) to another party (consignee) for sale: merchandise is included in the inventory of the____________, the owner of the inventory. Damaged or obsolete inventory: damaged or obsolete inventory is _________ counted in inventory if it cannot be sold. If damaged or obsolete inventory can be sold, cost should be reduced to. Includes all expenditures necessary to bring the inventory item to a salable condition and location. Inventory costing: accounting for inventory requires several decisions, which inventory system to use, perpetual, periodic, which inventory costing method to use, specific identification, first--in--first--out (fifo) Items of inventory are individually tagged: east to determine, which specific item(s) was sold--- cogs, which specific item(s) remain--- ending inventory.