Inventory cycle consists of three kinds of inventory: raw materials, semi-finished products, and finished goods.
Starting point for inventory accounting is to determine the cost of goods sold in an accounting certain cost, known as the "cost of sales". It is calculated by adding the value of an early inventory with new inventory costs and transportation costs, then subtract the number of period-end inventory.
-When Assess inventory, accounting view consider two variable-number and reference price- and inventory according to their value (the number of people price), count all the items available for sale, their valuation and calculation of their value. In addition, the evaluation of inventories may include items that have not been distributed, that company essentially owned and known as "goods in transit".
-Is The methods used in inventory records. Inventories are recorded on the basis of the price of each item. When accounting valuation of inventories at the end of the period, FIFO is used for JET A-1
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