COMMERCE 1AA3 Final: Commerce 1AA3 Final Exam Review
Document Summary
Commerce 1aa3 final exam review: chapters 6, 7, 9 & 10. Chapter 6: inventory and cost of goods sold: objectives: covers accounting for inventory and cost of goods sold. It also shows you how to analyze financial statements: gross profit (margin) is the difference between net sales and cost of goods sold. Account for inventory using the perpetual and periodic inventory systems. Materials used + overhead) cost of goods manufactured. The purchaser owns the good while it is in transit. This can be included in the purchaser"s inventory count: fob destination: legal title passes to purchaser when the item arrives. Therefore, the purchaser pays transportation costs. at their receiving dock. The seller still owns the good while in transit. Which is why it is included in the sellers inventory count. Therefore, the seller pays transportation costs: consigned goods. Calculate cost of goods available for sale as: 1.
