Term
| By companies with unique, expensive products |
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Definition
| When is specific identification method mainly used? |
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Term
| COGS/Number of units available for sale |
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Definition
| Weighted-average unit cost equals? |
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Term
| Sales Revenue - COGS = Gross Profit |
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Definition
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Term
1. HIGHER ending inventory
2. LOWER COGS
3. HIGHER reported profit than LIFO |
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Definition
| During periods of RISING COSTS, FIFO results in.. |
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Term
| When inventory costs are rising, LIFO results in the LOWEST amount of reported profits |
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Definition
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Term
Inventory 2700
Accounts Payable 2700 |
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Definition
RECORD THE TRANSACTION:
Mario's company purchases 300 units that total $2700 on account. |
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Term
Accounts Receivable 4500
Sales Revenue 4500
COGS 2500 (How much Mario payed for the inventory, minus any returns)
Inventory 2500 |
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Definition
RECORD THE TRANSACTION:
Mario sold 300 units of inventory on account for $15 each. |
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Term
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Definition
RECORD THE TRANSACTION:
We want to record our ending inventory in LIFO (1600) instead of FIFO (2200) so make the adjusting entry. |
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Term
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Definition
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Term
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Definition
| Title passes when the seller SHIPS the inventory |
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Term
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Definition
| The buyer records the purchase transaction when the inventory reaches its destination |
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Term
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Definition
RECORD THE TRANSACTION:
Mario pays $300 for freight charges associated with the purchase of inventory. |
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Term
Accounts Payable 2700
Inventory 54
Cash 2646 |
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Definition
RECORD THE TRANSACTION:
Mario makes payment on the inventory he recently bought(2700) and takes advantage of the terms 2/10, n/30. |
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Term
Accounts Payable 550
Inventory 550 |
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Definition
RECORD THE TRANSACTION:
Mario returns $550 worth of defective inventory |
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Term
| Gross Profit - Selling expenses - General/Admin. expenses = Operating Income |
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Definition
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Term
| Operating Income + Nonoperating revenues - Nonoperating expenses = Income before income taxes |
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Definition
| Income before income taxes equals? |
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Term
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Definition
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Term
| 365/Inventory turnover ratio |
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Definition
| Average days in inventory ratio? |
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Term
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Definition
| Gross profit ratio equals? |
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