Chap3-inventory

1、Chap3 inventory,Learning objective 1.determine inventory on hand by physical stock-take. 2. Determine cost of ending inventory 3.Determine cost of inventory and costs of goods sold under alternative cost flow assumption for both periodic inventory system and perpetual inventory system. 4. Compare th

2、e results of cost flow assumptions for both periodic inventory system and perpetual inventory system. 5. Apply the lower of cost and market rule 6.understand how to record sales return and purchase return under perpetual inventory system with different cost flow assumptions 7.describe the effects of

3、 inventory errors made in determining inventory,1.determining inventory on hand,Periodic inventory system:cost of goods sold=beginning inventory+purchase+freight in-ending inventory 購(gòu)入存貨記入“purchase”,”inventory”只有在資產(chǎn)負(fù)債表日才反映存貨實(shí)際成本 Transfer of ownership:we should ensure that all goods representing inve

4、ntory assets on the date of stock-take are included in the ending inventory,regardless of where the inventory is located. FOB shipping point:裝運(yùn)后，抵達(dá)前，屬于buyer FOB destination:裝運(yùn)后，抵達(dá)前，屬于seller 實(shí)際工作中，為簡(jiǎn)化，運(yùn)輸開始后，雙方即做購(gòu)銷處理，期末盤點(diǎn)是再根據(jù)條款舉行調(diào)整。,Goods on consignment:寄售存貨 Consignor:委托人 consignee: 受托人 未銷售給第三者前，屬于con

5、signor的存貨 應(yīng)列入其存貨盤點(diǎn)表。不管怎樣，不能作為consignee的存貨,2.determining cost of inventory,AASB 1019: inventory are defined as assets held for sale in the ordinary course of business, includes goods purchased by a retailer,or land and other property held for resale. Also includes goods produced ,work in process, raw

6、 materials,supplies awaiting for use in production process. Carrying forward costs of inventory:對(duì)耗用存貨成本的結(jié)轉(zhuǎn)，以確定期間經(jīng)營(yíng)成果。 AASB1019: inventory cost=cost of purchase +cost of conversion+other costs For retail business: purchase price+import duty first-in,first-out(FIFO); last-in,first-out(LIFO); average c

7、ost(weighted average,moving average) Cost flow assumption does not have to conform to physical movement of goods.,Date number of units unit cost total cost 1 July beginning inv. 10 $10 $100 Purchase made 15 Sep. purchase 12 11 132 7 Dec. purchase 15 12 180 total purchase 27 312 Goods for sale 37 $41

8、2 Sales made 20 Sep. sales 8 ? ? 12 Jan.sales 10 ? ? Total cost of goods sold 18 ? ? 30 June ending inv. 19 ? In periodic system,19 units on hand at June 30 would have been determined by physical stock-take. In perpetual system,it would be available from inventory record.,Specific identification met

9、hod-periodic,Require that each unit sold and each unit on hand be identified with a specific invoice.use some forms of identification such as serial numbers,stock-tags,or bar codes containing cost information,Total inventory costs=cost of goods sold+ending inventory Allocation process depends on cos

10、t assumption Date units unit cost total cost 1/7 9 $10 $90 7/12 10 $12 $120 210 Cost of goods sold=$412-210=$202 Cost of goods sold18 units 1 unit from beginning inventory at $10 per unit $10 12 units from 15 Sep. purchased at $11 per unit 132 5 units from 7 Dec. purchase at $12 per unit 60 Total co

11、st of goods sold $202,Related closing entries,Inventory 210 profit and loss summary 210 To record ending inventory.(因?yàn)閷?shí)地盤存法下存貨成本賬戶沒有及時(shí)記錄，通過(guò)月末的結(jié)轉(zhuǎn)分錄進(jìn)行記錄） Profit and loss summary 100 inventory 100 To remove beginning inventory.(道理同上，存貨減少也，沒有及時(shí)在賬戶記錄） 這2個(gè)結(jié)轉(zhuǎn)分錄是 periodic 方法的共同分錄，不論是何種cost assumptions.,FIFO

12、 method-periodic,Assumption:the first units acquired are the first units sold. So the cost of units on hand Is assumed to be the most recent purchases. Attention: it need not represent the actual physical movement of goods. FIFO refers to the flow of cost and determination of cost of goods sold. Tha

13、t is cost of goods sold is assumed to consist of the first units purchased, and the ending inventory is assumed to consist of the last units purchased.,Cost allocation-FIFO method-periodic,Cost of goods for sale $412 Date units unit cost total cost 7/12 15 $12 $180 15/9 4 $11 $44 Cost of ending inve

14、ntory 224 Cost of goods sold 188 Cost of goods sold: 18 units 10 units from beginning inventory at $10 $100 8 units from 15 Sep. purchase at $11 88 188 The other 4 units purchased on 15 Sep. are assumed to be still on hand.,LIFO method-periodic,The cost of last units purchased is assumed to be cost

15、of first units sold.so the costs of most recent purchase are transferred to cost of goods sold. And ending inventory consists of the cost of the earliest purchase. Cost allocation: Cost of goods for sale $412 Date units unit cost total cost 1/7 10 $10 $100 15/9 9 $11 $99 Cost of ending inventory 199

16、 Cost of goods sold $213 Cost of goods sold: 18 units 15 units from 7Dec.purchase at $12 $180 3units from 15 Sep. purchase at $11 33 $ 213,LIFO method-periodic,LIFO method may have nothing to do with the actual physical flow of goods. No attempt is made to compare the dates of sales with those of pu

17、rchases.units sold are identified with the most recent purchases.(沒有必要將銷售日期與購(gòu)買日期進(jìn)行比較,銷售成本就是最近購(gòu)買的存貨成本。即使存貨不在庫(kù)房，其成本也可以計(jì)入銷售成本。如1月12日為最后銷售日，1月14日最后購(gòu)買一批存貨，則即使存貨沒到庫(kù)，其單價(jià)也應(yīng)做為計(jì)算銷售成本的單價(jià)）,Weighted average method-periodic,Average cost =cost of goods for sale/numbers of goods for sale=$412/37=$11.14 per unit Cos

18、t of goods sold=$11.14*18=200.52 Ending inventory=$11.14*19=211.66 All units sold and on hand are costed at the average cost.,Comparison of costing methods:justification,features and disadvantages,S.I. FIFO LIFO W.A. Sales-18 units $360 $360 $360 $360 Beg.inv $100 $100 $100 $100 Add:purchase 312 312

19、 312 312 Goods for sale 412 412 412 412 Less:end inv. 210 224 199 212 Cost of goods sold 202 188 213 200 Gross profit 158 172 147 160 Less: expenses 120 120 120 120 Net profit 38 52 27 40 Ending inv. In B.S. 210 224 199 212,Comparison of costing methods:justification,features and disadvantages,When

20、costs change during a period,the selected costing method can have a significant effect on reported assets and net profit. Questions: summarize the main points about 4 costing methods. You may be answer this question after National day.,Comparison of costing methods,各種方法的總銷售成本一致，總凈利潤(rùn)也一致，但是在各期的分配不一致。

21、Specific identification:以實(shí)物流轉(zhuǎn)為基礎(chǔ)，對(duì)多數(shù)企業(yè)不適用，因?yàn)槌杀咎摺?duì)成本不同，但是產(chǎn)品完全相同的企業(yè)，可以操縱利潤(rùn)。（manipulate profit),如汽車銷售商,FIFO:簡(jiǎn)便，不易操縱利潤(rùn)，管理層不能自由選擇成本項(xiàng)目與收入配比，因?yàn)樽钤缳?gòu)進(jìn)的成本必須先費(fèi)用化。在物價(jià)持續(xù)上漲時(shí)期，會(huì)導(dǎo)致較其他計(jì)價(jià)方法較低的銷售成本，較高的利潤(rùn)，資產(chǎn)負(fù)債表上的期末存貨接近真實(shí)成本。 Overstatement of profit; illusory profit 1 July beginning inventory 10 units $10 15 Sep. Purchas

22、e 12 units $11 20 Sep. Sales 8units $20 7 Dec. Purchase 15 units $12 12 Jan. Sales 10 units $20 9月20號(hào)的計(jì)算銷售成本的單價(jià)是$10，因此毛利是$10。但是12月7號(hào)采購(gòu)存貨時(shí)，單價(jià)為$12，即毛利實(shí)際沒有10美元，只有8美元，因?yàn)橛?美元要用來(lái)重置存貨。 所以，F(xiàn)IFO會(huì)產(chǎn)生存貨利潤(rùn)，或虛幻利潤(rùn),LIFO,通常認(rèn)為該方法對(duì)凈利潤(rùn)的計(jì)量較好，因?yàn)閷?shí)現(xiàn)了現(xiàn)行收入和現(xiàn)行費(fèi)用的配比。物價(jià)上升時(shí)，凈利潤(rùn)較低。然而，資產(chǎn)負(fù)債表中期末存貨成本陳舊，在評(píng)估企業(yè)營(yíng)運(yùn)資本時(shí)不利；容易操縱利潤(rùn)，（期末購(gòu)進(jìn)或不購(gòu)進(jìn)存貨

23、）；,Weighted average,較好、易操作、不易操縱利潤(rùn)。平滑了凈利潤(rùn)和期末存貨成本，因?yàn)閮烧叨紱]有以現(xiàn)行成本計(jì)價(jià)。,Which method to select?,Depend on many factors:effect of costing method on financial statements,income tax laws,information needs,clerical cost,requirements of accounting standards.會(huì)計(jì)準(zhǔn)則不指定具體方法，而由企業(yè)管理層根據(jù)對(duì)信息的要求來(lái)選擇，對(duì)同種存貨，可能存在幾種計(jì)價(jià)方法都可行的情況。A

24、ASB1019不允許使用LIFO。但是沒有解釋。,Consistency in using a costing method,AASB1019:costing method and cost of goods sold should be reported. The entity cant switch to another costing method freely. WHY? Comparable accounting information in different accounting period. Exception:if change to another method,natu

25、re of change and effect of change should be disclosed in the notes to financial statements.,Costing method in perpetual inventory system,Accounting entry: Accounts receivable /cash at bank 22 GST collection 2 sales 20 To record sale revenue. cost of goods sold 10 inventory control 10 To record cost

26、of goods sold. (金額由成本流轉(zhuǎn)假設(shè)確定，分錄都一樣）,FIFO,perpetual inventory system,inventory record cost of goods sold Bal. Date Explan. Units U.C. T. C. Units U.C. T.C. Units U.C. T.C. 1/7 beg.bal. 10 10.00 100 15/9 purchase 12 11.00 132 10 10.00 100 12 11.00 132 20/9 sales 8 10.00 80 2 10 20 12 11.00 132 7/12 pur

27、chase 15 12 180 2 10 20 12 11.00 132 15 12 180 12/1 sales 2 10 20 4 11 44 8 11 88 15 12 180 思考：銷售成本結(jié)果與實(shí)地盤存法是否相同？為什么？ Perpetual : cost of goods sold=80+20+88=188 Periodic: cost of good sold=100+8*11=188 相同，是因?yàn)榻M成銷售成本的存貨構(gòu)成相同。,LIFO:,inventory record cost of goods sold Bal. Date Explan. Units U.C. T. C.

28、Units U.C. T.C. Units U.C. T.C. 1/7 beg.bal. 10 10 100 15/9 purchase 12 11.00 132 10 10 100 12 11 132 20/9 sales 8 11 88 10 10 100 4 11 44 7/12 purchase 15 12 180 10 10 100 4 11 44 15 12 180 12/1 sales 10 12 120 10 10 100 4 11 44 5 12 60 思考：銷售成本與實(shí)地盤存方法下LIFO結(jié)果是否相同？為什么？ Cost of good sold=88+120=208 Pe

29、riodic system: cost of goods sold=180+3*11=213 不同，是因?yàn)榻M成銷售成本的存貨構(gòu)成不同,Moving method,inventory record cost of goods sold Bal. Date Explan. Units U.C. T. C. Units U.C. T.C. Units U.C. T.C. 1/7 beg.bal. 10 10.00 100 15/9 purchase 12 11 132 22 10.55 232 20/9 sales 8 10.55 84.4 14 10.55 147.6 7/12 purchase

30、15 12 180 29 11.3 327.6 12/1 sales 10 11.3 113 19 11.3 214.6 思考：與weighted average 的區(qū)別？,Comparison of inventory system,FIFO:no difference LIFO: difference ,reason: timing of calculation of cost of goods sold Average method:difference,The lower of cost &market rule,Assets reported at cost in B.S. , wh

31、en unit cost net realizable value, net realizable value be reported in B.S. LCM rule: lower of cost and market value, market value=net realizable value, “estimated proceeds-further costs” AASB1019: LCM applied separately to each item of inventory Prudent principle: probable loss recorded in period f

32、irst noticed,not period sold.,An example ending Inv. Valued at cost LCM difference Sales rev.(5*300) 1500 1500 - Cost of goods for sale $1800 1800 - Less: ending Inv. (5*180) 900 (5*135) 675 -225 Cost of goods sold 900 1125 +225 Gross profit $ 600 $375 -225 Analysis: LCM cause $225 understatement of

33、 ending inv. $225 understatement of gross profit. 一個(gè)把損失記錄在銷售時(shí)期，另一個(gè)把損失記錄在發(fā)現(xiàn)可實(shí)現(xiàn)凈值下降的時(shí)期。 Homework: p595, 14.3,14.4,14.5,Sales returns and purchase returns: FIFO,perpetual,inventory record cost of goods sold Bal. Date Explan. Units U.C. T. C. Units U.C. T.C. Units U.C. T.C. 1/7 beg.bal. 10 10.00 100 15/

34、9 purchase 12 11.00 132 10 10.00 100 12 11.00 132 20/9 sales 8 10.00 80 2 10 20 12 11.00 132 25/9 pur. Return (4) 11 44 2 10 20 8 11 88 7/12 purchase 15 12 180 2 10 20 8 11 88 15 12 180 12/1 sales 2 10 20 2 11 22 6 11 66 15 12 180 14/1 sales return (2) 11 (22) 4 11 44 15 12 180,Sales returns and pur

35、chase returns:LIFO,inventory record cost of goods sold Bal. Date Explan. Units U.C. T. C. Units U.C. T.C. Units U.C. T.C. 1/7 beg.bal. 10 10.00 100 15/9 purchase 12 11.00 132 10 10.00 100 12 11.00 132 20/9 sales 8 11 88 10 10 100 4 11 44 25/9 pur. Return (4) 11 44 10 10 100 7/12 purchase 15 12 180 1

36、0 10 100 15 12 180 12/1 sales 8 12 96 10 10 100 7 12 84 14/1 sales return (2) 12 (24) 10 10 100 9 12 108,Sales returns and purchase returns:moving average,inventory record cost of goods sold Bal. Date Explan. Units U.C. T. C. Units U.C. T.C. Units U.C. T.C. 1/7 beg.bal. 10 10.00 100 15/9 purchase 12 11 132 22 10.55 232 20/9 sales 8 10.55 84.4 14 10.55 147.6 25/9 pur. Retn (4) 11 (44) 10 10.36 103.6 7/12 purchase 15 12 180 25 11.34 283.6 12/1 sales 8 11.34 90.72 17 11.34 192.8 14/1 sales retn (2) 11.34 (22.6