AFM101 Chapter Notes - Chapter 8: Finished Good, Current Asset, European Cooperation In Science And Technology

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Donna Psutka

Document Summary

8 reporting and interpreting cost of sales and. Items included in inventory: held for sale in normal course of business or, used to produce goods or services for sale. Goods/merchandise held for resale in the normal course of a business. Acquired by purchase, growth (food), or extraction (natural resources) for processing into finished goods. Price paid or consideration given to acquire asset. Cost includes: article to usable or saleable condition and location sum of applicable expenditures and charges directly and indirectly incurred in bringing: ie freight, import duties, inspection and preparation costs. Stop incurring costs when ready for use or shipment. Direct labour: earnings of employees who directly work on products being manufactured. Factory overhead: manufacturing costs that aren"t raw material or direct labour costs. Ie salary of supervisor, utilities, security, material handling. All costs of merchandise purchased or finished goods sold in a period. Bi + p ei = cos. After cash, inventory second most vulnerable to theft.