COMMERCE 1AA3 Study Guide - Final Guide: Legal Personality, Treasury Stock, Capital Account

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1AA3
• Professor: Aadil Merali Juma

Document Summary

Inventory (1: reported on two financial statement accounts, the balance sheet as inventory (asset), and on the income statement as cost of goods sold (income statement, number of units of inventory sold x cost per unit of inventory. Cogs = cogas (beg inv +purchases) end inv: how much the good costs to make ready for sale. Is an asset held for resale or used to produce services and goods for sale: calculated by: Inventory = number of units on hand x cost per unit: merchandising firms have only merchandise inventory, costs included in inventory: The company then records the cost of inventory. Three methods to costing: specific identification cost. A car dealership had a honda that cost ,000 and a toyota at ,000 as of january 1, 2008. During 2008, the dealership bought a dodge for ,000, a buick for ,000 and a chevy for. ,000; and sold the toyota and the buick.