Primary inventory cost flow assumptions: 主要库存成本流转假设 Under U.S.GAAP, the cost flow assumption used by company is not required to have a rational relationship with physical inventory flows; however, the primary objective is the selection of the method that will most clearly reflect periodic...
What are cost flow assumptions? What are LIFO layers? Why does LIFO usually produce a lower gross profit than FIFO? Should inventories be reported at their cost or at their selling prices? What is LIFO? Earn Our Certificates of Achievement ...
Cost flow assumptions can markedly impact gross profit and inventory numbers.成本流假设能够显著地影响到毛利润和存货量 Exhibit 6.2 shows that gross profit as a percent of net sales ranges from 30% to 55% due to nothing else but the cost flow assumption.按成本流动假设,Exhibit 6.2...
The term cost flow assumptions refers to the manner in which costs are removed from a company’s inventory and are reported as the cost of goods sold. In the U.S. the cost flow assumptions include FIFO, LIFO, and average. (If specific identification is used, there is no need to make ...
1-Nov Begin Inventory 50 $100 $5,500 6-Nov Purchase 50 $110 $5,500 50 $110 $5,500 However, when a customer buys 60 units, the difference in these cost flow assumptions is clear. In FIFO, the ending inventory cost ends up higher to reflect the increase in prices. As a c...
英语翻译This section introduces inventory cost flow assumptions.Assume that three identical units are purchased separately at the following three dates and costs:May 1 at $45,May 3 at $65,and May 6 at $70.One unit is then sold on May 7 for $100.E
英语翻译This section introduces inventory cost flow assumptions.Assume that three identical units are purchased separately at the following three dates and costs:May 1 at $45,May 3 at $65,and May 6 at $70.One unit is then sold on May 7 for $100.E
Cost Flow Assumptions: FIFO, or First in First Out LIFO, or Last in First Out Average Cost (Discussed Below) Specific Identification Inventory Reporting and Average Cost Average cost is the simplest of the four main inventory methods. Under this method the amount of goods made available for sal...
The result is a higher cost of goods sold and a lower average inventory than under other inventory cost flow assumptions if prices are rising. Because cost of goods sold (the numerator) will be higher and average inventory (the denominator) will be lower than under other inventory cost flow ...
1 InventoryIssues Whatisinventory?Whatcostsareincludedininventory?HowdoweseparateCOGSfromEnd.Inv?YESUNAccountingEnglish@2009 2 InventoriesDefinition Assetitemsheldforsaleintheordinarycourseofbusinessorgoodsthatwillbeusedorconsumedintheproductionofgoodstobesold.YESUNAccountingEnglish@2009 3 Types...