專業(yè)英語課件chapter

1、Slide 8-1INVENTORIES AND THECOST OF GOODS SOLDChapter8Slide 8-2InventoryGoods ownedand held for saleto customersCurrent assetInventory(存貨) DefinedSlide 8-3INCOME STATEMENT Revenue Cost of goods sold Gross profit Expenses Net incomeAs purchase costs (or manufacturing costs) are incurredas goods are s

2、oldBALANCE SHEET Current assets: Inventory$The Flow of Inventory CostsSlide 8-4GENERAL JOURNALDateAccount Titles and ExplanationPR DebitCreditEntry on Purchase DateInventory$Accounts Payable$Entry on Sale DateCost of Goods Sold$Inventory$In a perpetual inventory system, inventory entries parallel th

3、e flow of costs.The Flow of Inventory CostsSlide 8-5GENERAL JOURNALDateAccount Titles and ExplanationPR DebitCreditEntry on Sale DateCost of Goods Sold$Inventory$When identical units of inventory have different unit costs, a question naturally arises as to which of these costs should be used in reco

4、rding a sale of inventory.Which Unit Did We Sell? Slide 8-6A separate subsidiary account is maintained for each item in inventory.How can we determine the unit cost for the Sept. 10 sale?Item LL002Primary supplier Electronic CityDescription Laser LightSecondary supplier Electric CompanyLocation Stor

5、eroom 2Inventory level: Min: 25 Max: 200 PurchasedSoldBalanceDateUnitsUnit CostTotalUnitsUnit CostCost of Goods SoldUnits Unit CostTotalSept. 510030$ 3,000$ 10030$ 3,000$ Sept. 97550 3,750 10030 3,000 7550 3,750 Sept. 1010?Inventory Subsidiary LedgerSlide 8-7Specific identificationLIFOAverage costFI

6、FOWe use one of these inventory valuation methods to determine cost of inventory sold.Inventory Cost FlowsSlide 8-8 The Bike Company (TBC)Information for the Following Inventory ExamplesSlide 8-9 Specific Identification具體辨認法具體辨認法When a unitis sold, the specific cost of the unit sold is added to cost

7、 of goods sold.Slide 8-10DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ On August 14, TBC sold 20 bikes for $130 each. Nine bikes originally cost $91 and 11 bikes originally cost $106. Specific Identification ExampleSlide 8-11The Cost of Goods So

8、ld for the August 14 sale is $1,985, leaving $515 and 5 units in inventory. DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 149 91$ =819$ 11 106$ =1,166$ 515$ Lets look at the entries for the Aug. 14 sale. Specific Identification ExampleSlide

9、 8-12GENERAL JOURNALDateAccount Titles and ExplanationPR DebitCreditAug. 14 Cash2,600Sales2,60014 Cost of Goods Sold1,985Inventory1,985RetailCostA similar entry ismade after each sale. Specific Identification ExampleSlide 8-13Additional purchases were made on August 17 and 28. Costs associated with

10、sales on August 31 were as follows: 1 $91, 3 $106, 15 $115, & 4 $119.DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 149 91$ =819$ 11 106$ =1,166$ 515$ Aug. 1720 115$ =2,300$ 2,815$ Aug. 2810 119$ =1,190$ 4,005$ DatePurchasesCost of Goods Sol

11、dInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 149 91$ =819$ 11 106$ =1,166$ 515$ Aug. 1720 115$ =2,300$ 2,815$ Aug. 2810 119$ =1,190$ 4,005$ Aug. 311 91$ =91$ 3 106$ =318$ 15 115$ =1,725$ 4 119$ =476$ 1,395$ Specific Identification ExampleCost of Goods Sold for August 3

12、1 = $2,610Slide 8-14Balance Sheet Inventory = $1,395Income Statement COGS = $4,595 Specific Identification ExampleDatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 149 91$ =819$ 11 106$ =1,166$ 515$ Aug. 1720 115$ =2,300$ 2,815$ Aug. 2810 119$

13、=1,190$ 4,005$ Aug. 311 91$ =91$ 3 106$ =318$ 15 115$ =1,725$ 4 119$ =476$ 1,395$ Slide 8-15Since specific identification is so easy, cant we use it all the time?Not really. Specific identification is hard to use when we sell a lot of inventory that has lots of different costs.Slide 8-16Cost of Good

14、s Available for SaleUnits on hand on the date of saleAverage-Cost Method平均成本法平均成本法When a unit is sold,the average cost of each unit in inventory is assigned to costof goods sold.Slide 8-17On August 14, TBC sold 20 bikes for $130 each. DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910

15、$ 910$ Aug. 315 106$ =1,590$ 2,500$ The average cost per unit must be computed prior to each sale.Average-Cost Method Example$100 = $2,500 25Slide 8-18DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1420 100$ =2,000$ 500$ The average cost per

16、 unit is $100.Lets look at the entries for the Aug. 14 sale.Average-Cost Method Example$100 = $2,500 25Slide 8-19GENERAL JOURNALDateAccount Titles and ExplanationPR DebitCreditAug. 14 Cash2,600Sales2,60014 Cost of Goods Sold2,000Inventory2,000RetailCostA similar entry ismade after each sale.Average-

17、Cost Method ExampleSlide 8-20Additional purchases were made on August 17 and August 28.On August 31, an additional 23 units were sold.DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1420 100$ =2,000$ 500$ Aug. 1720 115$ =2,300$ 2,800$ Aug. 28

18、10 119$ =1,190$ 3,990$ Average-Cost Method ExampleSlide 8-21$114 = $3,990 35DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1420 100$ =2,000$ 500$ Aug. 1720 115$ =2,300$ 2,800$ Aug. 2810 119$ =1,190$ 3,990$ Total Purchases55Less: Sales to Dat

19、e-20Units on Hand35Average-Cost Method ExampleSlide 8-22$114 = $3,990 35DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1420 100$ =2,000$ 500$ Aug. 1720 115$ =2,300$ 2,800$ Aug. 2810 119$ =1,190$ 3,990$ Aug. 3123 114$ =2,622$ 1,368$ The avera

20、ge cost per unit is $114.Average-Cost Method ExampleSlide 8-23Income Statement COGS = $4,622DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1420 100$ =2,000$ 500$ Aug. 1720 115$ =2,300$ 2,800$ Aug. 2810 119$ =1,190$ 3,990$ Aug. 3123 114$ =2,6

21、22$ 1,368$ Balance Sheet Inventory = $1,368$114 12 = $1,368Average-Cost Method ExampleSlide 8-24Costs of Goods SoldEnding InventoryOldest CostsRecent CostsFirst-In, First-Out Method (FIFO)先進先出法先進先出法Slide 8-25On August 14, TBC sold 20 bikes for $130 each. DatePurchasesCost of Goods SoldInventory Bala

22、nceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ The Cost of Goods Sold for the August 14 sale is $1,970, leaving $530 and 5 units in inventory. DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1410 91$ =910$ 10 106$ =1,060$ 530$ FIFO E

23、xampleSlide 8-26GENERAL JOURNALDateAccount Titles and ExplanationPR DebitCreditAug. 14 Cash2,600Sales2,60014 Cost of Goods Sold1,970Inventory1,970RetailCostA similar entry ismade after each sale. FIFO ExampleSlide 8-27Additional purchases were made on Aug. 17 and Aug. 28.On August 31, an additional

24、23 units were sold.DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1410 91$ =910$ 10 106$ =1,060$ 530$ Aug. 1720 115$ =2,300$ 2,830$ Aug. 2810 119$ =1,190$ 4,020$ FIFO ExampleDatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$

25、910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1410 91$ =910$ 10 106$ =1,060$ 530$ Aug. 1720 115$ =2,300$ 2,830$ Aug. 2810 119$ =1,190$ 4,020$ Aug. 315 106$ =530$ 18 115$ =2,070$ 1,420$ Cost of Goods Sold for August 31 = $2,600Slide 8-28Balance Sheet Inventory = $1,420DatePurchasesCost of Goods SoldInventor

26、y BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1410 91$ =910$ 10 106$ =1,060$ 530$ Aug. 1720 115$ =2,300$ 2,830$ Aug. 2810 119$ =1,190$ 4,020$ Aug. 315 106$ =530$ 18 115$ =2,070$ 1,420$ Income Statement COGS = $4,570 FIFO ExampleSlide 8-29Costs of Goods SoldEnding InventoryRecent

27、 CostsOldest CostsLast-In, First-Out Method (LIFO)后進先出法后進先出法Slide 8-30On August 14, TBC sold 20 bikes for $130 each. DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ LIFO ExampleDatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910

28、$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1415 106$ =1,590$ 5 91$ =455$ 455$ The Cost of Goods Sold for the August 14 sale is $2,045, leaving $455 and 5 units in inventory. Slide 8-31GENERAL JOURNALDateAccount Titles and ExplanationPR DebitCreditAug. 14 Cash2,600Sales2,60014 Cost of Goods Sold2,045Invento

29、ry2,045RetailCostA similar entry ismade after each sale. LIFO ExampleSlide 8-32DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1415 106$ =1,590$ 5 91$ =455$ 455$ Aug. 1720 115$ =2,300$ 2,755$ Aug. 2810 119$ =1,190$ 3,945$ LIFO ExampleDatePurc

30、hasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1415 106$ =1,590$ 5 91$ =455$ 455$ Aug. 1720 115$ =2,300$ 2,755$ Aug. 2810 119$ =1,190$ 3,945$ Aug. 3110 119$ =1,190$ 13 115$ =1,495$ 1,260$ Additional purchases were made on Aug. 17 and Aug. 28.On Aug.

31、 31, an additional 23 units were sold.Cost of Goods Sold for August 31 = $2,685Slide 8-33DatePurchasesCost of Goods SoldInventory BalanceAug. 110 91$ =910$ 910$ Aug. 315 106$ =1,590$ 2,500$ Aug. 1415 106$ =1,590$ 5 91$ =455$ 455$ Aug. 1720 115$ =2,300$ 2,755$ Aug. 2810 119$ =1,190$ 3,945$ Aug. 3110

32、119$ =1,190$ 13 115$ =1,495$ 1,260$ Balance Sheet Inventory = $1,260Income Statement COGS = $4,730 LIFO ExampleSlide 8-34Inventory Valuation Methods: A SummaryCosts Allocated to:Valuation MethodCost of Goods SoldInventoryCommentsSpecificActual cost of Actual cost of unitsParallels physical flow iden

33、tificationthe units soldremainingLogical method when units are uniqueMay be misleading for identical unitsAverage costNumber of units sold times the Number of units on hand times the Assigns all units the same average unit costaverage unit cost average unit costCurrent costs are averaged in with old

34、er costsFirst-in, First-out (FIFO)Cost of earliest purchases onCost of most recently Cost of goods sold is based on older costshand prior to the salepurchased unitsInventory valued at current costsMay overstate income during periods of rising prices; may increase income taxes dueLast-in, First-out (

35、LIFO)Cost of most recentlyCost of earliest purchasesCost of goods sold shown at recent pricespurchased units(assumed still in inventory)Inventory shown at old (and perhaps out of date) costsMost conservative method during periods of rising prices; often results in lower income taxesSlide 8-35Practic

36、e Exercise 8.2 (p.351) (to be done in class)Slide 8-36Once a company has adopted a particular accounting method, it should follow that method consistently, rather than switch methods from one year to the next.The Principle of Consistency一致性一致性/一貫性原則一貫性原則Slide 8-37This inventory arrived just in time

37、for us to use in the manufacturing process.Just-In-Time (JIT) Inventory Systems 適時存貨制度適時存貨制度Slide 8-38GENERAL JOURNALDateAccount Titles and ExplanationPR DebitCreditDec. 31 Cost of Goods Sold$Inventory$The primary reason for taking a physical inventory is to adjust the perpetual inventory records fo

38、r unrecorded shrinkage losses, such as theft, spoilage, or breakage.Taking a Physical InventorySlide 8-39Reduces the value of the inventory.Adjust inventory value to the lower of historical cost or current replacement cost （現(xiàn)行重置成本）現(xiàn)行重置成本）(market).ObsolescenceLower of Cost or Market (LCM)LCM（成本市價孰低原則

39、成本市價孰低原則） and Other Write-Downs（減值減值）of InventorySlide 8-40Year EndA sale should be recorded when title to the merchandise passes to the buyer.F.O.B. shipping point title passes to buyer at the point of shipment.F.O.B. destination point title passes to buyer at the point of destination.Goods In Tran

40、sit在途商品在途商品Slide 8-41GENERAL JOURNALDateAccount Titles and ExplanationPR DebitCreditEntry on Purchase DatePurchases$Accounts Payable$In a periodic inventory system, inventory entries are as follows.Note that an entry is not made to inventory.Periodic Inventory SystemsSlide 8-42GENERAL JOURNALDateAcc

41、ount Titles and ExplanationPR DebitCreditEntry on Sale DateNo entry to inventory.Accounts Receivable$Sales$In a periodic inventory system, inventory entries are as follows.Periodic Inventory SystemsSlide 8-43The inventory on hand and the cost of goods sold for the year are not determined until year-

42、end.Periodic Inventory SystemsSlide 8-44Specific identificationLIFOAverage costFIFOWe use one of these inventory valuation methods in a periodic inventory system.Periodic Inventory SystemsSlide 8-45Computers, Inc.Mouse Pad InventoryDateUnits$/UnitTotalBeginning Inventory1,0005.25$ 5,250.00$ Purchase

43、s:Jan. 33005.30 1,590.00 June 201505.60 840.00 Sept. 152005.80 1,160.00 Nov. 291505.90 885.00 Goods Available for Sale1,8009,725.00$ Ending Inventory1,200?Cost of Goods Sold600?Information for the Following Inventory ExamplesSlide 8-46By reviewing actual purchase invoices, Computers, Inc. determines

44、 that the 1,200 mouse pads on hand at year-end have an actual total cost of $6,400.Determine the cost of goods sold for the year.Specific Identification ExampleSlide 8-47Computers, Inc.Mouse Pad InventoryDateUnits$/UnitTotalBeginning Inventory1,0005.25$ 5,250.00$ Purchases:Jan. 33005.30 1,590.00 Jun

45、e 201505.60 840.00 Sept. 152005.80 1,160.00 Nov. 291505.90 885.00 Goods Available for Sale1,8009,725.00$ Ending Inventory1,2006,400.00$ Cost of Goods Sold6003,325.00$ Cost of Goods Sold$9,725 - $6,400 = $3,325Specific Identification ExampleSlide 8-48Total Cost of Goods Available for SaleTotal Number

46、 of Units Available for SaleThe average cost is calculated at year-end as follows:Average-Cost MethodSlide 8-49Computers, Inc.Mouse Pad InventoryDateUnits$/UnitTotalBeginning Inventory1,0005.25$ 5,250.00$ Purchases:Jan. 33005.30 1,590.00 June 201505.60 840.00 Sept. 152005.80 1,160.00 Nov. 291505.90

47、885.00 Goods Available for Sale1,8009,725.00$ Ending Inventory1,200 ?Cost of Goods Sold600?Avg. Cost $9,725 1,800 = $5.40278 Average-Cost Method ExampleComputers, Inc.Mouse Pad InventoryDateUnits$/UnitTotalBeginning Inventory1,0005.25$ 5,250.00$ Purchases:Jan. 33005.30 1,590.00 June 201505.60 840.00

48、 Sept. 152005.80 1,160.00 Nov. 291505.90 885.00 Goods Available for Sale1,8009,725.00$ Ending Inventory1,2006,483.00$ Cost of Goods Sold6003,242.00$ Ending InventoryAvg. Cost $5.40278 1,200 = $6,483Cost of Goods SoldAvg. Cost $5.40278 600 = $3,242Slide 8-50Costs of Goods SoldEnding InventoryOldest C

49、ostsRecent CostsFirst-In, First-Out Method (FIFO)Slide 8-51Remember: Start with the 11/29 purchase and then add other purchases until you reach the number of units in ending inventory.FIFO ExampleComputers, Inc.Mouse Pad InventoryDateUnits$/UnitTotalBeginning Inventory1,0005.25$ 5,250.00$ Purchases:

50、Jan. 33005.30 1,590.00 June 201505.60 840.00 Sept. 152005.80 1,160.00 Nov. 291505.90 885.00 Goods Available for Sale1,8009,725.00$ Ending Inventory1,200?Cost of Goods Sold600?Slide 8-52DateBeg. Inv.PurchasesEnd. Inv.Cost of Goods SoldNov. 29150$5.90150$5.90Units150Now, lets complete the table.FIFO E

51、xampleDateBeg. Inv.PurchasesEnd. Inv.Cost of Goods Sold1,000$5.25600$5.25400$5.25Jan. 3300$5.30300$5.30June 20150$5.60150$5.60Sept. 15200$5.80200$5.80Nov. 29150$5.90150$5.90Units1,200600Now, we have allocated the cost to all 1,200 units in ending inventory.DateBeg. Inv.PurchasesEnd. Inv.Cost of Good

52、s Sold1,000$5.25600$5.25400$5.25Jan. 3300$5.30300$5.30June 20150$5.60150$5.60Sept. 15200$5.80200$5.80Nov. 29150$5.90150$5.90Units1,200600Costs$6,575$3,150Cost of Goods Available for Sale$9,725Slide 8-53Completing the table summarizes the computations just made.FIFO ExampleComputers, Inc.Mouse Pad In

53、ventoryDateUnits$/UnitTotalBeginning Inventory1,0005.25$ 5,250.00$ Purchases:Jan. 33005.30 1,590.00 June 201505.60 840.00 Sept. 152005.80 1,160.00 Nov. 291505.90 885.00 Goods Available for Sale1,8009,725.00$ Ending Inventory1,2006,575.00$ Cost of Goods Sold6003,150.00$ Slide 8-54Costs of Goods SoldE

54、nding InventoryRecent CostsOldest CostsLast-In, First-Out Method (LIFO)Slide 8-55Remember: Start with beginning inventory and then add other purchases until you reach the number of units in ending inventory.LIFO ExampleComputers, Inc.Mouse Pad InventoryDateUnits$/UnitTotalBeginning Inventory1,0005.2

55、5$ 5,250.00$ Purchases:Jan. 33005.30 1,590.00 June 201505.60 840.00 Sept. 152005.80 1,160.00 Nov. 291505.90 885.00 Goods Available for Sale1,8009,725.00$ Ending Inventory1,200?Cost of Goods Sold600?Slide 8-56DateBeg. Inv.PurchasesEnd. Inv.Cost of Goods Sold1,000$5.251,000$5.25Units1,000LIFO ExampleD

56、ateBeg. Inv.PurchasesEnd. Inv.Cost of Goods Sold1,000$5.251,000$5.25Jan. 3300$5.30200$5.30100$5.30Units1,200100Now, we have allocated the cost to all 1,200 units in ending inventory.Next, lets complete the table.DateBeg. Inv.PurchasesEnd. Inv.Cost of Goods Sold1,000$5.251,000$5.25Jan. 3300$5.30200$5

57、.30100$5.30June 20150$5.60150$5.60Sept. 15200$5.80200$5.80Nov. 29150$5.90150$5.90Units1,200600Costs$6,310$3,415Cost of Goods Available for Sale$9,725Slide 8-57Completing the table summarizes the computations just made.LIFO ExampleComputers, Inc.Mouse Pad InventoryDateUnits$/UnitTotalBeginning Invent

58、ory1,0005.25$ 5,250.00$ Purchases:Jan. 33005.30 1,590.00 June 201505.60 840.00 Sept. 152005.80 1,160.00 Nov. 291505.90 885.00 Goods Available for Sale1,8009,725.00$ Ending Inventory1,2006,310.00$ Cost of Goods Sold6003,415.00$ Slide 8-58Errors in Measuring InventoryBeginning InventoryEnding Inventor

59、yEffect on Income Statement Overstated Understated Overstated UnderstatedGoods Available for Sale+-00Cost of Goods Sold+-+Gross Profit-+-Net Income-+-Effect on Balance SheetEnding Inventory00+-Retained Earnings-+-An error in ending inventory in a year will result in the same error in the beginning i

60、nventory of the next year.Importance of an Accurate Valuation of InventorySlide 8-59Practice Exercise 8.7 (p.353) (to be done in class)Slide 8-60For interim financial statements, we may need to estimate ending inventory and cost of goods sold.Slide 8-61 Determine cost of goods available for sale.Est