BUS 251 Chapter Notes - Chapter 7: Combined Gas And Steam, Consignee, Consignor

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

Document Summary

Inventory is any item by a company for resale to customer or to be used in the manufacture of a product that is then sold to customers. Merchandisers or retailers companies that sell finished goods. Inventory is the most significant current asset because it"s the largest asset that will be converted into cash over the next year. All these determine cogs start - (what you add) = finished $ There are four transactions as inventory moves through a manufacturer: raw materials purchased (debit rm account, raw martials are used and moved into work-in-process account (credit- rm account, When should companies include inventory: probs not on exam. Fob shipping point means that the buyer is responsible for paying shipping and any other cost incurred while goods are on transit from the seller to the buyer. Therefore, the buyer owns the inventory when it leaves the sellers premises and the buys should include these inventory even though it hasn"t arrived.