CHAPTER 5: MERCHANDISING OPERATIONS
|
|
- Caren Blankenship
- 6 years ago
- Views:
Transcription
1 CHAPTER 5: MERCHANDISING OPERATIONS CHAPTER SYNOPSIS Chapter 5 first compares a service business with a merchandising business and then discusses the purchase and sale of merchandise inventory. The chapter then explains how to complete the accounting cycle for a merchandising company. Following an illustration of the operating cycle, both the periodic and perpetual inventory systems are defined; however, only the perpetual inventory system is emphasized. Students learn to make journal entries based on the purchase invoice. Purchase discounts, purchase returns and allowances, and transportation costs are discussed. The terms FOB destination and FOB shipping point are explained. The chapter then illustrates the journal entries for cash and credit sales, cost of goods sold, sales discounts, and sales returns and allowances. Gross profit is explained. The second part of the chapter begins with a discussion of the adjusting and closing process in a merchandising business. Students add an inventory adjustment to the adjusting entries previously learned. Closing entries for a merchandiser are journalized and posted. Preparation of the financial statements is discussed, emphasizing the classifications on the income statement. The multi-step and single-step income statement formats are compared. The gross profit percentage and the inventory turnover and ways to use these ratios in decision making complete the chapter. Decision guidelines help students answer some key questions about a merchandiser s financial statements. A summary problem reviews closing entries, financial statements, and inventory turnover. The work sheet for a merchandising business is illustrated and the similarities and differences between this work sheet and a service business s work sheet are highlighted. The computation of cost of goods sold in a periodic inventory system is discussed and illustrated. CHAPTER OBJECTIVES After reading this chapter, students should be able to: Describe and illustrate merchandising operations and the two types of inventory systems Account for the purchase of inventory using a perpetual system Account for the sale of inventory using a perpetual system Adjust and close the accounts of a merchandising business Prepare a merchandiser s financial statements Use gross profit percentage and inventory turnover to evaluate a business Page 1
2 ISSUES FOR REVIEW AND DISCUSSION 1. Credit terms of 2/10 n/30 mean that the purchaser may deduct 2 percent if the invoice is paid within 10 days, with the full amount due in 30 days if the early payment option is NOT exercised. 2. Freight in is an addition to the inventory account if the company uses the perpetual inventory method. 3. The accounting cycle for a merchandising company begins with the purchase of inventory. 4. Inventory is the most important asset for a merchandiser. 5. Owners and managers generally strive to sell inventory quickly. 6. The perpetual inventory system keeps a running record of inventory and cost of goods sold. 7. Describe a perpetual inventory system and a periodic inventory system. What are the important differences in these two types of inventory systems? A perpetual inventory system keeps a running record of inventory and cost of goods sold. This inventory system is integrated with accounts receivable and sales. Computers help to keep up-to the minute records to show the current inventory at any time. The system keeps track of inventory as it is both bought and sold, constantly updating the inventory account to current levels. This system offers management more control over inventory but requires a tremendous amount of record keeping. The sale of inventory requires not just one, but two entries, to record a transaction. One entry records the sales price of an item in revenue, while the other entry record the cost of the item in cost of goods sold. A periodic inventory system does NOT keep a continuous record of inventory on hand. At the end of the period, a physical count must be taken of inventory on hand to determine the cost of the items sold during the period. This type of system is used for relatively inexpensive goods. It does NOT offer as much control over inventory, but is much easier to account for on a daily basis. Page 2
3 8. A company uses the perpetual inventory method. Which of the following entries would be made to record a purchase of inventory on account? The accounting entry would be a debit to Inventory and a credit to Accounts payable. 9. A company uses the perpetual inventory method. Which of the following entries would be made to record a $1,200 purchase of inventory on account? The accounting entry would be a $1,200 debit to Inventory and a $1,200 credit to Accounts payable. 10. Journalize the following transactions (using the periodic inventory method): July 5 Purchased merchandise on account for $4,300 July 8 Paid freight charge on merchandise purchased on July 3 $230 Purchases 4,300 Accounts payable 4300 Freight in 230 Cash Journalize the following transactions (using the perpetual inventory method): July 5 Purchased merchandise on account for $4,300 July 8 Paid freight charge on merchandise purchased on July 3 $230 Inventory 4,300 Accounts payable 4,300 Inventory 230 Cash Compute the discount and the amount of payment for an invoice of $5600, 4/10, n30 paid on the 7th day x.04 = $224; pay = $5,376 Page 3
4 13. Create the journal entry for the purchase and payment of an invoice of $2200, 3/10, n15 if paid on the 17th day (using the perpetual inventory method). Inventory 2200 Accounts 2200 payable Accounts 2200 payable Cash 2200 Page 4
5 CHAPTER 6: MERCHANDISE INVENTORY CHAPTER SYNOPSIS Chapter 6 examines the accounting for merchandise inventory. The perpetual inventory record is explained. Four different costing methods specific unit cost, average cost, FIFO cost, and LIFO cost are explained. Students learn how to determine the quantity and cost of inventories and cost of goods sold for FIFO, LIFO, and average costing by using the perpetual inventory record and how to create the related journal entries. The inventory methods are compared and the advantages and disadvantages of each are detailed. A mid-chapter summary problem allows students to practice preparing three perpetual inventory records, preparing journal entries using FIFO, LIFO, and average cost, and computing gross profit for each method. The accounting principles and concepts that affect inventory the consistency principle, the disclosure principle, the materiality concept, and accounting conservatism are explained. The lower-of-cost-or-market rule is defined, followed by an illustration of the effects of inventory errors. The process of estimating the value of ending inventory by the gross profit method is explained. Ethical issues in inventory accounting are emphasized. The chapter then illustrates how to estimate inventory using the gross profit method. The Decision guidelines provide guidance for inventory management. The chapter concludes with a summary problem that has students prepare three income statements using FIFO, LIFO, and average cost. CHAPTER OBJECTIVES After reading this chapter, students should be able to: Define accounting principles related to inventory Define inventory costing methods Account for perpetual inventory by the three most common costing methods Compare the effects of the three most common costing methods Apply the lower-of-cost-or-market rule to inventory Measure the effects of inventory errors Estimate ending inventory by the gross profit method ISSUES FOR REVIEW AND DISCUSSION 1. Effects of inventory on the financial statements: Balance Sheet: current asset Income Statement: Cost of goods sold Page 5
6 Gross profit and net income 2. Accounting concepts and principles related to inventory: The consistency principle The disclosure principle The materiality concept Conservatism 3. Inventory Costing Methods: Specific unit cost (a.k.a. specific identification) - Uses specific cost of each unit of inventory First-In, First-Out (FIFO) - Cost of goods sold is based on oldest purchases - Inventory is based on most recent purchases Last-In, First-Out (LIFO) - Cost of goods sold is based on most recent purchases - Inventory is based on oldest costs of the period Average-cost - Cost of goods sold and inventory are based on the new weighted-average cost calculated after each purchase 4. Comparison of inventory methods in a period of rising prices: FIFO highest inventory, lowest cost of goods sold, highest gross profit, and net income LIFO lowest inventory, highest cost of goods sold, lowest gross profit, and net income - Lowest income taxes The opposite would be true in a period of decreasing prices - FIFO lowest inventory, highest cost of goods sold, lowest gross profit and net income - LIFO highest inventory, lowest cost of goods sold, highest gross profit and net income 5. The perpetual inventory system requires the use of a perpetual record. The perpetual record keeps track of purchases, cost of goods sold, and inventory on hand. Revenue is not recorded on the perpetual record. 6. The lower-of-cost-or-market (LCM) rule follows the conservatism principle. Inventory is recorded at whichever is lower the historical cost of the inventory, or Page 6
7 the market value (i.e., current replacement cost) of the inventory. 7. An error in inventory (i.e., understatement or overstatement) affects inventory, cost of goods sold, gross profit, and net income for two accounting periods. The error carries over to the second period but has the opposite effect on each item in the second period. The third period s financial statements would be correct. 8. The gross profit method can be used to estimate the value of ending inventory. Beginning inventory + net purchases = cost of goods available for sale cost of goods sold* = ending inventory *Cost of goods sold = Sales gross profit 9. Ending inventory can only be determined through a physical count for the periodic system. FIFO, LIFO, and average cost can be used to determine the value of ending inventory. 10. Samson Company had the following balances and transactions during Beginning inventory 10 units at $70 March 10 sold 8 units for $100 June 10 purchased 20 units at $80 October 30 sold 15 units for $100 What would the company's inventory amount be on the December 31, 2009 balance sheet if the perpetual First-in, First-out costing method is used? (Answers are rounded to the nearest dollar.) $ Metro Computer Company had the following balances and transactions during Beginning inventory 100 units at $75 March 10 sold 50 units for $200 June 10 purchased 200 units at $80 October 30 sold 150 units for $220 What would the company's inventory amount be on the December 31, 2009 balance sheet if the perpetual Last-in, First-out costing method is used? Page 7
8 (Answers are rounded to the nearest dollar.) $7,750 Page 8
ACCOUNTING FOR PERPETUAL AND PERIODIC INVENTORY METHODS
ACCOUNTING FOR PERPETUAL AND PERIODIC INVENTORY METHODS Key Terms and Concepts to Know Merchandise Inventory: Merchandise Inventory (Inventory or MI) refers to the goods the company has purchased and intends
More informationFinancial Accounting. John J. Wild. Sixth Edition. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Financial Accounting John J. Wild Sixth Edition McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 04 Reporting and Analyzing Merchandising Operations Conceptual
More informationCHAPTER 8. Valuation of Inventories: A Cost-Basis Approach 1, 2, 3, 4, 5, 6, 7, 8, 11, 12, 14, 15, 16
CHAPTER 8 Valuation of Inventories: A Cost-Basis Approach ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis 1. Inventory accounts; determining
More informationFinancial Accounting. John J. Wild. Sixth Edition. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Financial Accounting John J. Wild Sixth Edition McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 05 Reporting and Analyzing Inventories Conceptual Chapter
More informationHeintz & Parry. 20 th Edition. College Accounting
Heintz & Parry 20 th Edition College Accounting Chapter 13 Accounting for Merchandise Inventory 1 Explain the impact of merchandise inventory on the financial statements. Errors in inventory will cause
More informationCHAPTER 4 ACCOUNTING FOR MERCHANDISING OPERATIONS
CHAPTER 4 ACCOUNTING FOR MERCHANDISING OPERATIONS Key Terms and Concepts to Know Income Statements: Single-step income statement Multiple-step income statement Gross Margin = Gross Profit = Net Sales Cost
More informationINVENTORIES AND COST OF SALES
Chapter 06 INVENTORIES AND COST OF SALES PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA McGraw-Hill/Irwin
More informationChapter 7 Condensed (Day 1)
Chapter 7 Condensed (Day 1) I. Valuing and Cost of Goods Sold (COGS) II. Costing Methods: Specific Identification, FIFO, LIFO, and Average Cost III. When managers use FIFO, LIFO, and Average Cost IV. Lower-of-Cost-or-Market
More informationCHAPTER 6. Inventories ASSIGNMENT CLASSIFICATION TABLE For Instructor Use Only 6-1. Brief. B Problems. A Problems 1, 2, 3, 4, 5
CHAPTER 6 Inventories ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises A Problems B Problems 1. Describe the steps in determining inventory quantities. 1, 2, 3, 4, 5
More informationChapter Outline. Study Objective 1 - Describe the Steps in Determining Inventory Quantities
Chapter 6 Financial Notes and BE Chapter Outline Study Objective 1 - Describe the Steps in Determining Inventory Quantities In a merchandising company, inventory consists of many different items. These
More informationCHAPTER 6. Inventory Costing. Brief Questions Exercises Exercises 4, 5, 6, 7 3, 4, *14 3, 4, 5, 6, *12, *13 7, 8, 9, 10, 11, 12, 13
CHAPTER 6 Inventory Costing ASSIGNMENT CLASSIFICATION TABLE Study Objectives Brief Questions Exercises Exercises Problems Set A Problems Set B 1. Describe the steps in determining inventory quantities.
More informationCh6 Practice Test Part 1: Multiple Choice Choose the most correct answer from the choices provided.
Part 1: Multiple Choice Choose the most correct answer from the choices provided. 1. The factor which determines whether or not goods should be included in a physical count of inventory is a. physical
More informationCHAPTER 8. Valuation of Inventories: A Cost-Basis Approach 1, 2, 3, 4, 5, 6, 8, Perpetual vs. periodic. 2 9, 13, 14, 17, 20
CHAPTER 8 Valuation of Inventories: A Cost-Basis Approach ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis 1. Inventory accounts; determining
More informationC H A P T E R. Inventories. Corporate Financial Accounting 13e. human/istock/360/getty Images. Warren Reeve Duchac
C H A P T E R 6 Inventories Corporate Financial Accounting 13e Warren Reeve Duchac human/istock/360/getty Images Safeguarding Inventory (slide 1 of 2) Controls for safeguarding inventory begin as soon
More informationPREVIEW OF CHAPTER. Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield 8-2
8-1 PREVIEW OF CHAPTER 8 Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield 8-2 8 Valuation of Inventories: A Cost-Basis Approach LEARNING OBJECTIVES After studying this chapter, you
More informationCHAPTER 6. Inventories 12, 13, , , 11 16, , 13
CHAPTER 6 Inventories ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Describe the steps in determining inventory quantities. 1, 2,
More informationC H A P T E R 8 VALUATION OF INVENTORIES: A COST-BASIS APPROACH
C H A P T E R 8 VALUATION OF INVENTORIES: A COST-BASIS APPROACH Inventories are: items held for sale, or goods to be used in the production of goods to be sold. Businesses with : Intermediate Accounting
More informationCHAPTER 7 INVENTORIES
INVENTORIES DISCUSSION QUESTIONS 1. The receiving report should be reconciled to the initial purchase order and the vendor s invoice before inventory purchases are recorded and paid. This procedure will
More informationAccounting for Merchandising Operations
5-1 Chapter 5 Accounting for Merchandising Operations Learning Objectives After studying this chapter, you should be able to: 1. Identify the differences between service and merchandising companies. 2.
More informationAccounting for Merchandising Operations
5-1 Chapter 5 Accounting for Merchandising Operations Learning Objectives After studying this chapter, you should be able to: 1. Identify the differences between service and merchandising companies. 2.
More informationCHAPTER 5. Accounting for Merchandising Operations 2, 3, , 12, 13, 14
CHAPTER 5 Accounting for Merchandising Operations ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems *1. Identify the differences between
More informationCHAPTER 6 INVENTORIES SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY. Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT
CHAPTER 6 INVENTORIES SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 C 8. 2 C 15. 3 K a 22. 7 C sg 29. 3
More informationACCOUNTING FOR MERCHANDISING ACTIVITIES
Chapter 6 ACCOUNTING FOR MERCHANDISING ACTIVITIES Presented by: Endra M. Sagoro Economic Faculty YSU endra_ms@uny.ac.id Operating Cycle of a Merchandising Company Cash Accounts Receivable 2. Sale of merchandise
More informationFFQA 1. Complied by: Mohammad Faizan Farooq Qadri Attari ACCA (Finalist) Contact:
FFQA 1 Objective of IAS 2 The objective of IAS 2 is to prescribe the accounting treatment for inventories. It provides guidance for determining the cost of inventories and for subsequently recognising
More information7 Estimate the value of inventory using the. 8 Measure a company's management of. 9 Determine the value of inventory using the
1 Determine the value of inventory using the specific identification method under the perpetual inventory system 2 Determine the value of inventory using the first-in, first-out (FIFO) method under the
More informationCOURSE TITLE. Honors Accounting LENGTH. Full Year Grades DEPARTMENT. Business Education Barbara O Donnell, Supervisor SCHOOL
COURSE TITLE Honors Accounting LENGTH Full Year Grades 11-12 DEPARTMENT Business Education Barbara O Donnell, Supervisor SCHOOL Rutherford High School DATE Fall 2016 Honors Accounting Page 1 I. Introduction/Overview/Philosophy
More informationAlgorithmic Granite Bay Jet Ski, Incorporated
Algorithmic Granite Bay Jet Ski, Incorporated Level II 1 st Edition Transactions For June 10-16 and the Mid-Project Evaluation Did you backup your data files at the end of Module One? It is recommended
More informationINVENTORIES, DISCUSSION QUESTIONS
INVENTORIES, DISCUSSION QUESTIONS Cristina Maslach Zampetakis Laschinger 1. The receiving report should be reconciled to the initial purchase order and the vendor s invoice before recording or paying for
More informationCHAPTER 6 INVENTORIES
1. The receiving report should be reconciled to the initial purchase order and the vendor s invoice before recording or paying for inventory purchases. This procedure will verify that the inventory received
More informationACCOUNTING. Contest Basics SAC 2016
ACCOUNTING Contest Basics SAC 2016 P a g e 2 UIL Accounting Basics Agenda 1. Constitution & Contest Rules and NEW Handbook 2. 2017 Condensed Contest Schedule & Solution 3. State-adopted textbooks (high
More informationChapter 5: Merchandising Operations and the Multiple-Step Income Statement
Vocabulary Quiz 1. A detailed inventory system in which the cost of each inventory item is maintained and the records continuously show the inventory that should be on hand. 2. A reduction given by a seller
More informationCEBU CPAR CENTER. M a n d a u e C I t y
Page 1 of 9 CEBU CPAR CENTER M a n d a u e C I t y AUDITING PROBLEMS AUDIT OF INVENTORIES PROBLEM NO. 1 The Pasay Company is a wholesale distributor of automobile replacement parts. Initial amounts taken
More informationB.COM 2 PRIVATE COST ACCOUNTING. B.com-2 PRIVATE Annual Examination COMPILED & SOLVED BY: Jahangeer Khan
B.COM 2 PRIVATE COST ACCOUNTING B.com-2 PRIVATE Annual Examination 20 COMPILED & SOLVED BY: Jahangeer Khan 20 Q.1: MANUFACTURING CONCERN: Consider the following information taken from the books of SAHAB
More informationInventories. 2. Explain the accounting for inventories and apply the inventory cost flow methods.
6-1 Chapter 6 Inventories Learning Objectives After studying this chapter, you should be able to: 1. Describe the steps in determining inventory quantities. 2. Explain the accounting for inventories and
More informationAdjusted Trial Balance Debit Credit Debit Credit Debit Credit Merchandise Inv. 16 Store Supplies 10 Store Equipment 20 Accum. Depr. Store Equip.
GRADED PROJECT Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to
More informationCOURSE DESCRIPTION. Rev 2.0 March 2017
COURSE DESCRIPTION This CE course provides information on inventory management. Information discussed includes inventory methods and accounting systems, cost of goods sold, and inventory turnovers and
More informationIntermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield 9-2
9-1 C H A P T E R 9 INVENTORIES: ADDITIONAL VALUATION ISSUES Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield 9-2 Learning Objectives 1. Describe and apply the lower-of-cost-or-net realizable
More informationAccounting Services. Study Guide
Accounting Services Study Guide Assessments: 0001 Accounts Payable Clerk 0002 Accounts Receivable Clerk 0003 Full-Charge Bookkeeper 0004 Payroll Clerk Endorsed by the American Institute of Professional
More informationAkuntansi Biaya. Modul ke: 09FEB. Direct Material Cost. Fakultas. Diah Iskandar SE., M.Si dan Nurul Hidayah,SE,Ak,MSi. Program Studi Akuntansi
Modul ke: Akuntansi Biaya Direct Material Cost Fakultas 09FEB Diah Iskandar SE., M.Si dan Nurul Hidayah,SE,Ak,MSi Program Studi Akuntansi Effective Cost Control Specific assignment of duties and responsibilities.
More informationACC106 Office Accounting I Administration Outline
ACC106 Office Accounting I Administration Outline Course Information Organization Mercer County Community College Credits 3 Contact Hours 3 Description Basic accounting course designed for non-transfer
More informationQUICKBOOKS PRO 2008 WORKSHOP 6 THE CORNER DRESS SHOP
QUICKBOOKS PRO WORKSHOP 6 THE CORNER DRESS SHOP Mini Practice Set Reviewing the Accounting Cycle for a Merchandise Company This workshop will help you review the key concepts of a merchandise company by
More informationItawamba Community College ACC 2213 Principles of Accounting I
Itawamba Community College ACC 2213 Principles of Accounting I The Business Division provides student learning opportunities in Accounting, Business Communications, Legal Environment of Business, Economics,
More informationAlgorithmic Granite Bay Jet Ski, Incorporated
Algorithmic Granite Bay Jet Ski, Incorporated Level II 1 st Edition Transactions For June 3-9 Page 1 BEGIN THE PROGRAM AND ENTER THE DATA When you have: (1) Carefully read the introduction pages of this
More informationManagement s Accountability to Stakeholders Stakeholders Provide Management is accountable for: Owners Operating activities Government Creditors
Chapter 15 Distinguish management accounting from financial accounting Management Management s Accountability to Stakeholders Stakeholders Owners Government Provide Management is accountable for: Operating
More informationBasic Inventory & CGS
Professor Authored Problem Solutions Intermediate Accounting 2 Basic Inventory & CGS Solution to Problem 55 Costs to add to inventory account 1. Cost to acquire or purchase 2. Cost to transport or ship
More informationOf the following manufacturing operations, which is the best suited to the utilization of a job order system?
Current Quiz MGT 402 Solved by Atif Ghafoor For more help contact with at (ofakatif@yahoo.com) Page 1 Of the following manufacturing operations, which is the best suited to the utilization of a job order
More informationB.COM II COST ACCOUNTING
The workings under the heading of Additional Working are not required according to the requirement of the examiner. These are only for understanding the solutions. For more help, visit 2014 B.COM II COST
More informationChapter 8: Cost-Based Inventories and Cost of Sales
Chapter 8: Cost-Based Inventories and Cost of Sales Case 8-1 Love Your Pet, Inc. 8-2 Alliance Appliance Ltd. 8-3 Terrific Titles Inc. Suggested Time Technical Review TR-1 Right to Recovery Asset... 5 TR-2
More informationProfitMaker to ASI Smartbooks Report Cross References
ProfitMaker to ASI SmartBooks Report Cross Reference Table of Contents ProfitMaker to ASI Smartbooks Where Do I Find?: Open Orders Report 3 Book/Billed Order Comparison 3 Order Costing Report 3 Monthly
More informationHONORS FINANCIAL ACCOUNTING
FREEHOLD REGIONAL HIGH SCHOOL DISTRICT OFFICE OF CURRICULUM AND INSTRUCTION BUSINESS ADMINISTRATION SPECIALIZED LEARNING CENTER HONORS FINANCIAL ACCOUNTING COURSE PHILOSOPHY The Financial Accounting course
More informationPEACHTREE COMPLETE 2009 WORKSHOP 6 THE CORNER DRESS SHOP
PEACHTREE COMPLETE 2009 WORKSHOP 6 THE CORNER DRESS SHOP Mini Practice Set Reviewing the Accounting Cycle for a Merchandise Company This workshop will help you review the key concepts of a merchandise
More informationPROBLEMS INVENTORY VALUATION (1-6)
Problems Accounting 21 PROBLEMS INVENTORY VALUATION (1-6) Problem # 21.1: Use the following information of Fatima Malik and Co. A company just starting business made the following four inventory purchases
More informationCourse Syllabus for ACCOUNTING 101 PRINCIPLES OF ACCOUNTING
Course Syllabus for ACCOUNTING 101 PRINCIPLES OF ACCOUNTING Instructor: Andrea Murowski Larrison Hall, Room 214 224-2927 amurowski@brookdale.cc.nj.us COURSE OBJECTIVE: The purpose of this course is to
More informationSyllabus: Accounting
Course Overview: Accounting is the key to opening the door to the business world and that is why it is called the "language of business." Every business in our society is impacted by accounting-based decisions.
More informationIntroduction to Cost & Management Accounting ACCT 1003(MS 15B)
UNIVERSITY OF WEST INDIES OPEN CAMPUS Introduction to Cost & Management Accounting ACCT 1003(MS 15B) INVENTORY VALUATION INVENTORY VALUATION & CONTROL At the end of an accounting period, inventory/stock
More informationJan Product Features Mambo Software Business ERP
Jan 2015 Product Features Mambo Software Business ERP Table of Contents 1.1. Features of Mambo Software Business ERP... 3 1.1.1. Company Information... 3 1.1.2. Chart of Accounts... 3 1.1.1. Customers...
More informationYAVAPAI COLLEGE/PRESCOTT UNIFIED SCHOOL DISTRICT District Instructional Guide (DIG) Year-Long Semester Pacing Guide 2015/2016 School Year
YAVAPAI COLLEGE/PRESCOTT UNIFIED SCHOOL DISTRICT District Instructional Guide (DIG) Year-Long Semester Pacing Guide 2015/2016 School Year School: Prescott High dual enrolled with Yavapai College Grade
More informationPREVIEW OF CHAPTER 9-2
9-1 PREVIEW OF CHAPTER 9 9-2 Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield 9 Inventories: Additional Valuation Issues LEARNING OBJECTIVES After studying this chapter, you should
More information7-1. Prepared by Coby Harmon University of California, Santa Barbara Westmont College
7-1 Prepared by Coby Harmon University of California, Santa Barbara Westmont College 7 Accounting Information Systems Learning Objectives After studying this chapter, you should be able to: [1] Identify
More information2014/2015 School Year. Unit / Theme Content (Nouns) Skills (Verbs) YC Learning Outcomes & Course Content/ADE Standards
School : Prescott High dual enrolled with Yavapai College YAVAPAI COLLEGE/PRESCOTT UNIFIED SCHOOL DISTRICT District Instructional Guide (DIG) Year Long Semester Pacing Guide Subject: YC: ACC131 (Principles
More information1 of 12 13/05/2008 11:41 PM Specialty Sports Store Practice Set Being completed by: Beanut Transactions - week 1 [feedback page] This is a feedback page. Please review this page carefully because later
More informationIbrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing)
Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing) Introduction What is inventory control? Inventory control includes the function of inventory ordering and purchasing,
More informationAudit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable. Chapter 18
Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable. Chapter 18 2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley
More information1. Cost accounting involves the measuring, recording, and reporting of: A. product costs. B. future costs. C. manufacturing processes.
1. Cost accounting involves the measuring, recording, and reporting of: A. product costs. B. future costs. C. manufacturing processes. D. managerial accounting decisions. 2. In accumulating raw materials
More informationIntroduction to Bookkeeping
Introduction to Bookkeeping Course map This document outlines the course structure. Course orientation Lesson 1: Welcome Lesson 2: Getting your diploma Lesson 3: How do I study this course? Unit 1: Welcome
More informationRisk assessment checklist - Purchasing cycle
Check Yes or No or N/A (where not applicable). Where a No is indicated, some action may be required to rectify the situation. Cross-references (e.g., See FN 1.01) point to the relevant policy in the First
More informationKianoff & Associates Crystal Clear Reports for Sage 100
Kianoff & Associates Crystal Clear Reports for Sage 100 We have developed Crystal Reports for all current versions of Sage 100 and are available for most all modules. Accounts Payable BP801- Vendor File
More informationChapter 9 Inventory. Inventory Procedures (verb) Inventory in accounting (noun)
Chapter 9 Inventory Inventory can be a noun or a verb. As a noun, it means the quantity of goods and materials that an activity has on hand at any given time. As a verb, it means the process of counting
More informationTEACHING AID EXPLORING ACCOUNTING AND REPORTING ALTERNATIVES FOR THE INVENTORY LCM PROCEDURE. Kennard S. Brackney, Ph.D. Professor
TEACHING AID EXPLORING ACCOUNTING AND REPORTING ALTERNATIVES FOR THE INVENTORY LCM PROCEDURE Kennard S. Brackney, Ph.D. Professor Philip R. Witmer, Ph.D. Professor witmerpr@appstate.edu (828) 262-6232
More informationinven_wbn_outs_et Title page Inventories» What's Behind the Numbers?» Cost Outflows» Express Video
Title page Inventories» What's Behind the Numbers?» Cost Outflows» Express Video www.navigatingaccounting.com Agenda Scenic: Cost of Sales and Inventories Basics IFRS and US GAAP Introduction Cost methods
More informationPengantar Akuntansi I Akuntansi Untuk Perusahaan Dagang
Modul ke: 08 Fakultas FEB Pengantar Akuntansi I Akuntansi Untuk Perusahaan Dagang Hari Setiyawati / Diah Iskandar/ Nurlis / Fitri Indriawati Program Studi Akuntansi Operasi Perusahaan Dagang Perusahaan
More informationDue: Tuesday, May 1, 2007 by 5:45 p.m.
A439: Advance Auditing 2007 Final exam Directions: The final exam consists of 30 multiple choice questions. Ground Rules. As a take-home exam you may use notes, the internet, auditing textbooks or other
More informationACC111 Principles of Financial Accounting Administrative Outline
ACC111 Principles of Financial Accounting Administrative Outline Course Information Organization Credits 4 Contact Hours 4 Mercer County Community College Description Study of the accounting cycle and
More informationAcct 2301 (Spring 2006) - Exam 3
Acct 2301 (Spring 2006) - Exam 3 Student: 1. During 2005, Truman Company incurred manufacturing costs of $40,000 to work on and complete 10,000 gizmos. The company sold 8,000 of the gizmos during the year.
More informationOffice of Curriculum, Instruction, and Technology. Accounting I. Grade 9, 10, 11, or 12. Prerequisites: None. Credit Value: 5 ABSTRACT
Office of Curriculum, Instruction, and Technology Accounting I Prerequisites: None Credit Value: 5 ABSTRACT The Accounting I course provides an introduction to the accounting processes and procedures of
More informationRevenue for chemical manufacturers
Revenue for chemical manufacturers The new standard s effective date is coming. US GAAP August 2017 kpmg.com/us/frv b Revenue for chemical manufacturers Revenue viewed through a new lens Again and again,
More informationAccounting I Instructional Unit Accounting I Unit Content Objective Performance Indicator Performance Task State Standards Code:
Instructional Unit Adjusting & Closing Entries for a Service Business -Accounting concepts and able to complete -Identify accounting concepts -assigned exercises 3.7.10B, practices related to adjusting
More information1). Fixed cost per unit decreases when:
1). Fixed cost per unit decreases when: a. Production volume increases. b. Production volume decreases. c. Variable cost per unit decreases. d. Variable cost per unit increases. 2). Prime cost + Factory
More informationREPORTING AND ANALYZING INVENTORY
chapter 6 REPORTING AND ANALYZING INVENTORY the navigator Scan Study Objectives Read Feature Story Scan Preview Read Text and Answer Do it! p. 285 p. 291 p. 296 p. 298 Work Using the Decision Toolkit Review
More informationCONTENTS. Day 1. Accounting Principles, Concepts and Conventions Revenue Realisation Matching Concept
Lession 1: Basic of Accounting 1.1 1.2 Day 1 Accounting Principles, Concepts and Conventions 1.2.1 Revenue Realisation 1.2.2 Matching Concept 1.2.3 Accrual 1.2.4 Going Concern 1.2.5 Accounting Period 1.2.6
More informationLPA Retail System s 2012 User Fair
LPA Retail System s 2012 User Fair LPA BUSINESS MEASUREMENTS LPA Measuring what Matters to Reach your Business Goals Increase Revenue Decrease Costs Improve Accountability Improve ability to make informed
More informationSAGE ACCPAC. Sage Accpac ERP. Converting from Simply Accounting by Sage
SAGE ACCPAC Sage Accpac ERP Converting from Simply Accounting by Sage 2008 Sage Software, Inc. All rights reserved. Sage Software, Sage Software logos, and all Sage Accpac product and service names are
More informationCHAPTER5. Accounting for Merchandising Operations. Apago PDF Enhancer. Study Objectives. Feature Story
CHAPTER5 Study Objectives After studying this chapter, you should be able to: [1] Identify the differences between service and merchandising companies. [2] Explain the recording of purchases under a perpetual
More informationAccreditation Period. Victorian Certificate of Education ACCOUNTING STUDY DESIGN. VICTORIAN CURRICULUM AND ASSESSMENT AUTHORITY
Accreditation Period 2019 2023 Victorian Certificate of Education ACCOUNTING STUDY DESIGN www.vcaa.vic.edu.au VICTORIAN CURRICULUM AND ASSESSMENT AUTHORITY Authorised and published by the Victorian Curriculum
More informationQuickBooks Online Student Guide. Chapter 10. Inventory
QuickBooks Online Student Guide Chapter 10 Inventory Chapter 2 Chapter 10 In this chapter, you ll learn how QuickBooks handles inventory. You can use QuickBooks to track the items you keep in inventory
More informationChapter 02 - Cost Concepts and Cost Allocation
Chapter 02 - Cost Concepts and Cost Allocation Student: 1. Product costs for a manufacturing company consist of direct materials, direct labor, and overhead. 2. Period cost and product cost are synonymous
More informationAccounting Professional Certificate Program with Externship
Clemson University - Center for Corporate Learning 1 North Main Street, 7th Floor, Greenville, SC 29601 http://www.clemson.edu/online/ Contact: Juanita Durham 864.656.3984 jdrhm@clemson.edu Education &
More informationActivant Prophet 21. Perfecting Your Month and Year End Closing Routines
Activant Prophet 21 Perfecting Your Month and Year End Closing Routines This class is designed for System Administrators Operation Managers Accounting Managers Objectives Suggested month end and year end
More informationMicrosoft Dynamics GP2010 Inventory Year-End Closing Checklist
Microsoft Dynamics GP2010 Inventory Year-End Closing Checklist Inventory Control Year End Closing What happens when I close the year on Dynamics GP 2010? Transfers all summarized current-year quantity,
More informationSri Lanka Accounting Standard LKAS 2. Inventories
Sri Lanka Accounting Standard LKAS 2 Inventories CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD LKAS 2 INVENTORIES OBJECTIVE 1 SCOPE 2 5 DEFINITIONS 6 8 MEASUREMENT OF INVENTORIES 9 33 Cost of inventories
More informationRecording the inventory opening balances stocktake
Chapter 7: nventory 7.55 Revision xercise 3 This exercise requires you to complete the setup of MYOB AccountRight Plus for Botany Bay Bikes. The company decided to convert their present manual system of
More informationChapter 2. Job Order Costing and Analysis QUESTIONS
Chapter 2 Job Order Costing and Analysis QUESTIONS 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between
More informationSupplier Policies & Procedures
20.0 PERFORMANCE REQUIREMENTS Supplier Policies & Procedures True Value is committed to providing its Retailers with products that consistently meet or exceed their expectations for value and merchandise
More informationChapter 4. Systems Design: Process Costing. Types of Costing Systems Used to Determine Product Costs. Job-order Costing.
4-1 Chapter 4 Systems Design: Process Costing Types of Costing Systems Used to Determine Product Costs Process Costing Job-order Costing F Many units of a single, homogeneous product flow evenly through
More informationPopular Reports. Maitre D Software Suite COPYRIGHT POSERA SOFTWARE INC
Maitre D Software Suite COPYRIGHT POSERA SOFTWARE INC Maitre D Software i Table of Contents DSR 4 Sales Consolidated 4 Top 15 Items Consolidated 5 Daybook 5 Weekly summary of Clients by Time Period 6 Weekly
More informationBasic Inventory & CGS
Professor Authored Problems Intermediate Accounting 2 Acct 342/542 Basic Inventory & CGS Problem 55 Costs to Add to Inventory Account. What is the general guideline governing the amount that an entity
More informationACC108 Hospitality Accounting- Administrative Outline
ACC108 Hospitality Accounting- Administrative Outline Course Information Organization Mercer County Community College/Business & Technology Division Credits 3 Contact Hours 3 Catalog Description Introductory
More informationJOB ORDER COSTING. LO 1: Cost Systems. Determine whether job order costing or process costing would be more appropriate for each industry.
JOB ORDER COSTING Terms Cost Accounting Process Cost System Job Order Cost System LO 1: Cost Systems Job-Order Costing Used for custom or unique items Each job is accounted for separately Measures cost
More informationAchieve. FPER Performance objectives
Achieve FPER Performance objectives Performance objectives are benchmarks of effective performance that describe the types of work activities trainees will be involved in as certified accounting technicians
More information