COM 270 Chapter Notes - Chapter 7: Perpetual Inventory, Consignor, Consignee
Document Summary
Beginning inventory + net purchases = cogas ending inventory: goods that aren"t sold during the accounting period. Ending inventory (based on a physical count) = costs of goods sold (goods not on hand & assumed to be sold) (2) perpetual inventory system: continuously tracking inventory. + purchases (based on invoices during the period) Cost of goods sold (updated after each sale) = ending inventory (inventory that should be on hand) Ending inventory per count (actual inventory on hand) When unit costs , fifo ending inventory is than wa, & Fifo cogs is than wa: selecting a cost formula based on the nature of the inventory. When inventory is bought/obtain, it is recorded at its cost. When inventor is carried on the statement of nancial position, it must be recorded at a lower cost, such that it doesn"t represent a greater vale that is expected to ow in from it.