Inventory Flashcards
(30 cards)
Valuation of Inventory
Lower of Cost or Net realizable Value
*(estimated selling price less estimated cost of completion and disposal)
Cost of Inventories:
Cost of Purchase
Cost of Conversion
Other Costs*
*only to the extent that they are incurred in bringing the inventories to their present location and condition.
Purchase Price, Import Duties and Taxes, Freight, Handling and Other Direct Acquisition Costs (minus trade discounts, rebates, and other similar items)
Cost of Purchases
Direct Labor and Overhead incurred in the conversion.
Cost of Conversion
FOB shipping point
Included in Buyer inventory
FOB seller
Included in Buyer inventory
FOB FAS (free alongside ship)
Included in Buyer inventory
FOB CIF (cost, insurance, and freight)
Included in Buyer inventory
Bill and Hold arrangement
Included in Buyer inventory
Sold on installment
Included in Buyer inventory
Sale on with high probability of return
Included in Buyer inventory
Goods manufactured at customer’s specification (special order)
Included in Buyer inventory
FOB destination
Included in Seller inventory
FOB buyer
Included in Seller inventory
FOB ex-ship
Included in Seller inventory
Sale with buyback agreement
Included in Seller inventory
Sale under inventory financing
Included in Seller inventory
Hold for shipping instruction
Included in Seller inventory
Sale on trial/approval
Included in Seller inventory
Inventory pledged
Included in Seller inventory
Presentation of Inventory
Current Assets, Cost of Sales, Operating Expense
Unsold or remaining goods or items.
Current Assets
Sold goods or items.
Cost of Sales
Used office and store supplies.
Operating Expenses
