BU127 Chapter Notes - Chapter 8: Inventory Turnover, The Royal And Ancient Golf Club Of St Andrews, Pizza Hut
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BU127 Full Course Notes
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Bu127 chapter 8: reporting and interpreting cost of sales and inventory. Inventory: tangible property held for sale in normal course of business or used in producing g/s for sale. Inventory is reported on statement of financial position as current asset b/c it"s normally used or converted into cash within one year or within the next operating cycle o the business, whichever is longer. Merchandisers: companies that don"t manufacture the items they sell, but simply purchase those products then sell to customers. Merchandise inventory: goods held for resale in ordinary course of business: goods usually are acquired in finished condition and are ready for sale without further processing. Raw materials inventory: items acquired for purpose of processing into finished goods. Work-in-process inventory: goods in process of being manufactured but not complete. Finished goods inventory: manufactured goods that are complete and available for sale. Goods in inventory are recorded in conformity with the cost principle.
