Inventory Systems Michael Asibu, Woodrow Lemon, Laura Moll, Jenessa Nagozruk, Brian Norton QRB/501 May 21, 2012 Ohidul Siddiqui Inventory Systems With the increasing demand to cut costs and increase revenues, developing the right inventory systems have become essential to compete in business. According to the Counselors to America’s Small Business, “Control of inventory, which typically represents 45% to 90% of all expenses for business, is needed to ensure that business has the right
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A retail firm would normally use an inventory account titled finished goods inventory goods in process inventory raw materials inventory merchandise inventory 2. MC.07-18 A manufacturing company typically has how many inventory accounts? 1 3 2 4 3. MC.07-19 A manufacturing firm would not normally have an account titled raw materials inventory finished goods inventory merchandise inventory goods in process inventory 4. MC.07-20 Which of the following
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EXERCISE 8-5: (a) Inventory December 31, 2014 (unadjusted) $234,890 Transaction 2 13,420 Transaction 3 12,800 Transaction 4
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purchases and sales transactions and explain the adjustments and closing process for merchandisers. A Look Ahead Chapter 6 extends our analysis of merchandising activities and focuses on the valuation of inventory. Topics include the items in inventory, costs assigned, costing methods used, and inventory estimation techniques. Chapter 4 focused on the final steps of the accounting process. We explained the importance of proper revenue and expense recognition and described the closing process. We also
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Acct 3511 Chapter 8 Concepts – Inventory & Cost of Goods Sold Professor Marco J. Malandra, CPA 1. State 4 characteristics of Inventory & Cost of Goods Sold (CGS)? Is Inventory initially capitalized or expensed? What concept determines when it’s expensed? Inventory: 1) Asset (current) 2) Balance Sheet 3) real 4) debit NAB CGS: 1) Expense 2) Income Statement 3) nominal 4) debit NAB Matching: Any expenses associated with revenue
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INVENTORIES QUESTIONS: 1. Write down the definition of ‘Inventory’ under IAS-2. What physical materials does ‘Inventory’ include? 2. According to IAS-2, what are the components of non-components of Inventory Cost? 3. Distinguish between ‘Perpetual’ and ‘Periodic’ system for recording Inventory? Show proper examples. 4. What are the Cost Flow Formulas/Assumptions allowed in IAS-2 for maintaining Inventory? Show examples. Which one should be used in what situation? 5. Explain
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Week 5 5-8 Identify whether each description best applies to a periodic or a perpetual inventory system. a. Provides more timely information to managers.—perpetual b. Requires an adjusting entry to record inventory shrinkage. -- Perpetual c. Markedly increased in frequency and popularity in business within the past decade. -- Periodic d. Records cost of goods sold each time a sales transaction occurs. – Perpetual 5-9 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . .
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BANK RECONCILITAION A. Purpose and importance of bank reconciliation. * Purpose A Bank reconciliation is a process performed by a company to ensure that the company’s records (check register, general ledger account, balance sheet, etc.) are correct and that the bank’s records are also correct. For example, the balance on the bank statement is probably not the amount that appears in the company’s records. In all likelihood the checks written by the company in the days immediately before
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14 ques | | | | | | | | | | chap 1.2.3.4.6.7 | | | | | | | | | ques1. multiple chapter 1. | | | | | | | | which statement user of accounting incorrect | Chapter 1 shareholder will answer. What they concern Financial statement will include the users such as managers, investors, creditors, and regulatory agencies. The purpose of looking at the financial statement is to make decision on whether to invest or loan money. Types of corporate available Proprietorship
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unit price of inventory is increasing during a period, a company using the LIFO inventory method will show less gross profit for the period, than if it had used the FIFO inventory method. 2.Under a perpetual inventory system, the cost of goods sold is determined each time a sale occurs. 3.A periodic inventory system does not require a detailed record of inventory items. 4.Control over cash disbursements is improved if major expenditures are paid by check. 5.A manufacturer’s inventory consists of
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