Presentation is loading. Please wait.

Presentation is loading. Please wait.

Example Two Air Conditioners purchased in Rs. 20,000 each, Rs. 25,000 each in Feb. One sold in March, cost of goods sold: Rs. 20,000 or Rs. 25,000?

Published byRosalyn Simmons Modified over 8 years ago

Similar presentations

Presentation on theme: "Example Two Air Conditioners purchased in Rs. 20,000 each, Rs. 25,000 each in Feb. One sold in March, cost of goods sold: Rs. 20,000 or Rs. 25,000?"— Presentation transcript:

1 Example Two Air Conditioners purchased in Jan @ Rs. 20,000 each, 3 @ Rs. 25,000 each in Feb. One sold in March, cost of goods sold: Rs. 20,000 or Rs. 25,000?

2 Inventory Approaches Specific identification: Unit(s) identified specifically. Cost-flow assumptions

3 Cost Flow Assumptions Three methods for measuring “cost of good sold”, under GAAP. –Average cost –First in First out (FIFO) –Last in First Out (LIFO)

4 During Inflation:- FIFO shows less expenses (income statement) and higher inventory valuation (balance sheet); values ending inventory nearer to current cost. LIFO shows higher expenses (income statement) and lower inventory valuation (balance sheet).

5 Accounting Policies Regarding Depreciation Expired or used portion of a fixed asset during an accounting period: to achieve matching principle.

Download ppt "Example Two Air Conditioners purchased in Rs. 20,000 each, Rs. 25,000 each in Feb. One sold in March, cost of goods sold: Rs. 20,000 or Rs. 25,000?"

Similar presentations

Reporting and Interpreting Cost of Goods Sold and Inventory Chapter 7 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

Reporting and Interpreting Cost of Goods Sold and Inventory Chapter 7 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.
Principles of Financial Accounting

Principles of Financial Accounting
CHAPTER 6 INVENTORY COSTING.

CHAPTER 6 INVENTORY COSTING.
Record this!. Question 1 The Chelsea Video sells of $9000 of merchandise on account FOB destination on May 4. A/R 9000 –Sales 9000.

Record this!. Question 1 The Chelsea Video sells of $9000 of merchandise on account FOB destination on May 4. A/R 9000 –Sales 9000.
Chapter 6 - Inventory Valuation1 INVENTORY – Chapt 6. p.277-284 BALANCE SHEET Biggest Asset Inventory  see example How can an inventory item be both raw.

Chapter 6 - Inventory Valuation1 INVENTORY – Chapt 6. p BALANCE SHEET Biggest Asset Inventory  see example How can an inventory item be both raw.
Valuation and Reporting of Receivables and Inventory Chapter 6.

Valuation and Reporting of Receivables and Inventory Chapter 6.
Inventory Chapter 11 Robinson, Munter, Grant. Grant, Munter & Robinson Chapter 112 Learning Objectives Understand the methods for determining inventory.

Inventory Chapter 11 Robinson, Munter, Grant. Grant, Munter & Robinson Chapter 112 Learning Objectives Understand the methods for determining inventory.
BUS 2101 Decision Making Financial Information Financial Statement Analysis Financial Statements GAAP Income Statement Statement of Cash Flow Balance Sheet.

BUS 2101 Decision Making Financial Information Financial Statement Analysis Financial Statements GAAP Income Statement Statement of Cash Flow Balance Sheet.
A. After each sale B. After each purchase and sale C. At the end of the accounting period D. Don’t know Q 1: Under a periodic inventory system ending inventory.

A. After each sale B. After each purchase and sale C. At the end of the accounting period D. Don’t know Q 1: Under a periodic inventory system ending inventory.
ACCT 201 ACCT 201 ACCT 201 Dr. Fred BarbeeACCT 2011 Reporting and Analyzing Inventories UAA – ACCT 201 Principles of Financial Accounting Dr. Fred Barbee.

ACCT 201 ACCT 201 ACCT 201 Dr. Fred BarbeeACCT 2011 Reporting and Analyzing Inventories UAA – ACCT 201 Principles of Financial Accounting Dr. Fred Barbee.
Accounting for Inventory By Sandhya Ghosh ( Pal ).

Accounting for Inventory By Sandhya Ghosh ( Pal ).
Module 5 Reporting and Analyzing Operating Assets.

Module 5 Reporting and Analyzing Operating Assets.
Inventory Costing. For A Periodic Inventory System a physical count of inventory is taken at the end of the fiscal year to determine how many units you.

Inventory Costing. For A Periodic Inventory System a physical count of inventory is taken at the end of the fiscal year to determine how many units you.
Inventory Costing Demonstration Inventory. M&M Store Purchases: 1) 8 Brown/Red ($2 each) 2) 7 Blue/Green ($3 each) 3) 5 Yellow/Orange ($4 each) 20 Total.

Inventory Costing Demonstration Inventory. M&M Store Purchases: 1) 8 Brown/Red ($2 each) 2) 7 Blue/Green ($3 each) 3) 5 Yellow/Orange ($4 each) 20 Total.
Chapter Five Accounting for Inventories McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Chapter Five Accounting for Inventories McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
GLENCOE / McGraw-Hill.

GLENCOE / McGraw-Hill.
PRINCIPLES OF FINANCIAL ACCOUNTING

PRINCIPLES OF FINANCIAL ACCOUNTING
Reporting and Interpreting Cost of Goods Sold and Inventory Chapter 7 McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc.

Reporting and Interpreting Cost of Goods Sold and Inventory Chapter 7 McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc.
Inventory Costing using FIFO, LIFO and AVERAGE Costing Methods 5-1 Calculate the following: CGS, Gross Profit and Ending Inventory under FIFO, LIFO and.

Inventory Costing using FIFO, LIFO and AVERAGE Costing Methods 5-1 Calculate the following: CGS, Gross Profit and Ending Inventory under FIFO, LIFO and.
Chapter 8-1 Valuation of Inventories: A Cost-Basis Approach Chapter8 Intermediate Accounting 12th Edition Kieso, Weygandt, and Warfield Prepared by Coby.

Chapter 8-1 Valuation of Inventories: A Cost-Basis Approach Chapter8 Intermediate Accounting 12th Edition Kieso, Weygandt, and Warfield Prepared by Coby.

Similar presentations

Ads by Google