BU127 Chapter 8: BU-127 Chapter 8

• School: WLU
• Department: Business
• Course: BU127
• Professor: James Moore

Document Summary

Inventory: tangible property held for sale in the normal course of business or used in producing goods or services for sale. Includes goods held for resale in the ordinary course of business. Includes items acquired for the purpose of processing into finished goods. Includes goods in the process of being manufactured. Includes manufactured goods that are complete and available for sale. Direct labour: refers to the earnings of employees who work directly on the products being manufactured. Includes manufacturing costs that are not raw material costs or direct labour costs. The cost of goods available for sale: refers to the sum of the cost of beginning inventory and the cost of purchases (additions to inventory) for the period. Cost of sales equation (cid:1829)(cid:1867)(cid:1871)(cid:1872) (cid:1867)(cid:1858) (cid:1845)(cid:1857)(cid:1871)=(cid:1828)(cid:1857)(cid:1859)(cid:1866)(cid:1866)(cid:1866)(cid:1859) (cid:1866)(cid:1874)(cid:1857)(cid:1866)(cid:1872)(cid:1867)(cid:1870)+(cid:1873)(cid:1870)(cid:1855) (cid:1871)(cid:1857)(cid:1871) (cid:1866)(cid:1856)(cid:1866)(cid:1859) (cid:1866)(cid:1874)(cid:1857)(cid:1866)(cid:1872)(cid:1867)(cid:1870) Perpetual inventory system: detailed inventory record is maintained, recording each purchase and sale during the accounting period.