BUS 251 Lecture Notes - Consignee, Current Asset, Income Statement

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Susan Bubra

Document Summary

& manufacturers: management"s objective to sell inventory at higher price than purchased, selecting appropriate suppliers, determining necessary inventory levels & avoiding stock outs, pricing for profit, protecting inventory from damage & loss due to theft. Inventory classifications: manufacturer, raw materials, work-in-process & finished goods, merchandiser & retailer, finished goods purchased for resale. Inventory ownership: fob shipping point, buyer owns inventory when left seller"s premises, fob destination, buyer owns inventory when reached buyer"s premises, consignment arrangements, consignor vs consignee. + purchases: = cost of goods available for sale. = cost of goods sold hand assumed sold. = cost of goods available for sale sale. = (1 unit x ) + (5 units x ) + (6 units x ) = + + = : weighted average, first-in, first-out (fifo, comparison of cost formulas, cost formula decision tree. Inventory recorded at cost on date of acquisition.