BIOL 4124 : Exam 2 Lecture 1
Document Summary
Merchandising companies: buy and sell goods, primary source of revenue is ___sales revenue_ Gross profit sold (profit from the sales of merch) __cogs is the total cost of goods sold during the period. Flow of costs beginning = cogs= cogas = . Companies use either a ____perpetual___ inventory system or a. What"s the difference: perpetual, maintain detailed records of the cost of each inventory purchase and sale, records ____continuously_____ show inventory that should be on hand, company determines cost of goods sold __each time_ a sale occurs. Periodic: do _not___ keep detailed records of the goods on hand, cost of goods sold determined by __count___ at the end of the accounting period, calculation of cost of goods sold example: Cindy"s boutique had ,000 of inventory on hand at the start of the year. During the year, she purchased ,000 of inventory. At year-end, she counted inventory with a cost of ,000 on hand.
