BU127 Lecture Notes - Lecture 13: Perpetual Inventory, Retained Earnings, Weighted Arithmetic Mean
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BU127 Full Course Notes
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Document Summary
Bu127 lecture #13: reporting and interpreting cost of sales and inventory. Understanding the business roles of the accounting system: provides accurate information, provides up-to-date information, provides information to help protect assets primary goals of inventory management, provide sufficient quantities of high-quality inventory, minimize the costs of carrying inventory. Merchandiser: merchandise purchases merchandise inventory cost of sales. Manufacturer: raw materials raw materials inventory work in process inventory (includes direct labour and factory overhead) finished goods inventory cost of sales. Internal control of inventory separation of inventory accounting and physical handling of inventory storage in a manner that protects from theft and damage limiting access to authorized employees. Maintaining perpetual inventory records comparing perpetual records to periodic physical counts. Add: purchases carried over from the prior carried over from the prior period accumulated in the inventory account period accumulated in the purchases account.
