Chapter 6 -
Inventory & COGS
6.1 Nature &
of
Inventing COGS
Current
Inventory: . Asset
held for
products resele
Cost of Gold Sold: ·
Expense
Cost of sales outflow of
resource cance
by sea
inventory
Gross Profit: Sales Revenue - COGS
-> Indicates assets from sales new left to
for
experie
pay of
Fixed, indirect cost (Admin costs)
G
P -
Operating expense
-
Net income.
Cost of affects COGS & GP
Inventory ->
, Types of
Innating
Merchandisers: companies Cretail wholesales that
or
purchase
Sinished & hold to resele
further
inventory without
processing
Retailer: that
merchandisers sell
directly to customer
Wholesclets: march ...
sell to other retaike
mentory
Merchander hold then
When Murch.
Inventory sold -> becomes expense or COGS.
Manufacture: company buys & transforms raw meterial ->
finished produ
Inventory type for Manufactures:
① Raw Meteriel
inventory
·Ingredients to make product
RM M
inventory
when account
purchase ->
from RM
When used, RM cost
-
account
transferred
Inventory
work-in
progress inventing
accout.
② Work-in
progress
Rm used in
Inventory - labour &
cost
production
in account
utilities
stay completed.
until
When
completed -> Finished good account.
Inventory & COGS
6.1 Nature &
of
Inventing COGS
Current
Inventory: . Asset
held for
products resele
Cost of Gold Sold: ·
Expense
Cost of sales outflow of
resource cance
by sea
inventory
Gross Profit: Sales Revenue - COGS
-> Indicates assets from sales new left to
for
experie
pay of
Fixed, indirect cost (Admin costs)
G
P -
Operating expense
-
Net income.
Cost of affects COGS & GP
Inventory ->
, Types of
Innating
Merchandisers: companies Cretail wholesales that
or
purchase
Sinished & hold to resele
further
inventory without
processing
Retailer: that
merchandisers sell
directly to customer
Wholesclets: march ...
sell to other retaike
mentory
Merchander hold then
When Murch.
Inventory sold -> becomes expense or COGS.
Manufacture: company buys & transforms raw meterial ->
finished produ
Inventory type for Manufactures:
① Raw Meteriel
inventory
·Ingredients to make product
RM M
inventory
when account
purchase ->
from RM
When used, RM cost
-
account
transferred
Inventory
work-in
progress inventing
accout.
② Work-in
progress
Rm used in
Inventory - labour &
cost
production
in account
utilities
stay completed.
until
When
completed -> Finished good account.
