when calculating ending inventory do you use purcahse costs or sales price?作者: RobertA 时间: 2011-7-11 19:50
Can you expand more on that please?
From the curriculum, the equation is
Beginning inventory + Purchases - COGS = Ending inventory作者: nitoha 时间: 2011-7-11 19:50
babycakes Wrote:
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> when calculating ending inventory do you use
> purcahse costs or sales price?
Depends on the cost flow assumptions used. For a GAAP company, FIFO/LIFO/AVCO is used to value the ending inventory and COGS (Of course the purchase price is used in each case)作者: koba 时间: 2011-7-11 19:50
inventory = lower of cost (purchase cost) or net realizable value (expected net sales price). the cost of course depends cost flow assumption used.
Edited 1 time(s). Last edit at Sunday, November 28, 2010 at 11:06PM by oz001.
