BIOC 212 Chapter Notes - Chapter 6: Weighted Arithmetic Mean, Gross Margin, Profit Margin
17 Aug 2018
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*factory workers" wages inventory, because the workers" wages are necessary costs to make the product. If hq officers (ceo, cfo, etc) then it"s not cost in term of manufacturing the product, so part of operating expenses. If the company isn"t doing well, then cut r&d staff. If the costs occurred in factory then it"s part of the inventory. *only time when inventory has impact on i/s is when the inventory is sold. *video: apple failing to protect chinese factory workers a lot of workers committed suicide due to overwork. *for perpetual, the beginning balance will always be determined. Valuation of inventory at the year end: lower of cost and nrv (net realizable value) Determine inventory valuation at year end at lower of cost or nrv. Cost means ending balance of the inventory: certain events can happen that change the value of the inventory. Can lower sale price: may be due changes in market conditions (eg. : competition, regulation, customer taste)
