BU387 Chapter Notes - Chapter 8: Accounts Payable, Consignee, Consignor
Document Summary
Cost of goods manufactured represents the product costs of goods that are completed and transferred to finished goods inventory. Inventory under the lower of cost and net realizable value model. The cost of goods sold is the diference between those available for sale during the period and those on hand at the end of the period: Cost of goods acquired or produced during the year. Someimes purchased goods are in transit (not yet received) at the end of a iscal period. The accouning for these goods depends on who owns them. If the goods are shipped f. o. b desinaion, ownership and its associated risks and rewards do not pass unil the goods reach the desinaion. When the consignee sells the consigned goods, the revenue, less a selling commission and expenses incurred in accomplishing the sale, is remited to the consignor. Both ifrs and pe gaap recognize three acceptable cost formulas:
