1、Chapter 6,Inventories and Cost of Sales,Conceptual Chapter Objectives,C1: Identify the items making up merchandise inventory C2: Identify the costs of merchandise inventory,Analytical Chapter Objectives,A1: Analyze the effects of inventory methods for both financial and tax reporting A2: Analyze the
2、 effects of inventory errors on current and future financial statements A3: Assess inventory management using both inventory turnover and days sales in inventory,Procedural Chapter Objectives,P1: Compute inventory in a perpetual system using the methods of specific identification, FIFO, LIFO, and we
3、ighted average P2: Compute the lower of cost or market amount of inventory P3: Appendix 6A: Compute inventory in a periodic（周期性的） system using the methods of specific identification, FIFO, LIFO, and weighted average P4: Appendix 6B: Apply both the retail inventory and gross profit （总利润）methods to es
4、timate inventory.,Determining Inventory Items,Merchandise inventory includes all goods that a company owns and holds for sale, regardless of where the goods are located when inventory is counted.,Items requiring special attention include:,Goods in Transit,Goods Damaged or Obsolete（已废弃的）,Goods on Con
5、signment 以托销方式,C 1,Goods in Transit,C 1,Goods on Consignment,Merchandise is included in the inventory of the consignor, the owner of the inventory.,C 1,Goods Damaged or Obsolete,Damaged or obsolete goods are not counted in inventory if they cannot be sold.,Cost should be reduced to net realizable va
6、lue if they can be sold.,C 1,Determining Inventory Costs,Include all expenditures necessary to bring an item to a salable condition and location.,C 2,Internal Controls and Taking a Physical Count,Most companies take a physical count of inventory at least once each year.When the physical count does n
7、ot match the Merchandise Inventory account, an adjustment must be made.,C 2,Inventory Costing Under a Perpetual System,Inventory affects . . .,The matching principle requires matching cost of sales with sales.,Balance Sheet,Income Statement,P1,Inventory Costing Under a Perpetual System,Accounting fo
8、r inventory requires several decisions . . .,Costing Method Specific Identification, FIFO, LIFO, or Weighted AverageInventory System Perpetual or Periodic,P1,Frequency in Use of Inventory Methods,P1,Inventory Cost Flow Assumptions,P1,Inventory Costing Illustration,P1,Specific Identification,When uni
9、ts are sold, the specific cost of the unit sold is added to cost of goods sold.,P1,Specific Identification,The above purchases were made in August. On August 14, a company sold eight bikes originally costing $91 and 12 bikes originally costing $106.,P1,The Cost of Goods Sold for the August 14 sale i
10、s $2,000. 8 bikes 91 = $ 728 12 bikes 106 = $1,272 After this sale, there are five units in inventory at $500: 2 bikes $91 = $ 182 3 bikes $106 = $ 318,Specific Identification,P1,Additional purchases were made on August 17 and 28. The cost of the 23 items sold on August 31 were as follows: 2 $91 3 $
11、106 15 $115 3 $119,Specific Identification,P1,Specific Identification,Cost of Goods Sold for August 31 = $2,582,P1,Specific Identification,After the August 31 sale, there are 12 units in inventory at $1,408: 5 $115 7 $119,P1,Specific Identification,P1,Specific Identification,P1,First-In, First-Out (
12、FIFO),Cost of Goods Sold,Ending Inventory,Oldest Costs,Recent Costs,P1,First-In, First-Out (FIFO),The above purchases were made in August. On August 14, the company sold 20 bikes.,P1,First-In, First-Out (FIFO),The Cost of Goods Sold for the August 14 sale is $1,970. After this sale, there are five u
13、nits in inventory at $530: 5 $106,P1,First-In, First-Out (FIFO),Additional purchases were made on August 17 and 28. Twenty-three bikes were sold on August 31.,P1,First-In, First-Out (FIFO),Cost of Goods Sold for August 31 = $2,600,P1,First-In, First-Out (FIFO),After the August 31 sale, there are 12
14、units in inventory at $1,420: 2 $115 10 $119,P1,First-In, First-Out (FIFO),Balance Sheet Inventory = $1,420,Income Statement COGS = $4,570,P1,First-In, First-Out (FIFO),Here are the entries to record the purchases and sales entries. The numbers in red are determined by the cost flow assumption used.
15、,All purchases and sales are made on credit. The selling price of inventory was as follows:8/14 $130 8/31 150,P1,Last-In, First-Out (LIFO),Cost of Goods Sold,Ending Inventory,Recent Costs,Oldest Costs,P1,Last-In, First-Out (LIFO),The above purchases were made in August. On August 14, the company sol
16、d 20 bikes.,P1,Last-In, First-Out (LIFO),The Cost of Goods Sold for the August 14 sale is $2,045. After this sale, there are five units in inventory at $455: 5 $91,P1,Last-In, First-Out (LIFO),Additional purchases were made on August 17 and 28. Twenty-three bikes were sold on August 31.,P1,Last-In,
17、First-Out (LIFO),Cost of Goods Sold for August 31 = $2,685,P1,Last-In, First-Out (LIFO),After the August 31 sale, there are 12 units in inventory at $1,260: 5 $91 7 $115,P1,Last-In, First-Out (LIFO),P1,Last-In, First-Out (LIFO),Here are the entries to record the purchases and sales entries. The numb
18、ers in red are determined by the cost flow assumption used.,All purchases and sales are made on credit. The selling price of inventory was as follows:8/14 $130 8/31 150,P1,Weighted Average,When a unit is sold, the average cost of each unit in inventory is assigned to cost of goods sold.,P1,Weighted
19、Average,The above purchases were made in August. On August 14, 20 bikes were sold.,P1,Weighted Average,First, we need to compute the weighted average cost per unit of items in inventory.,P1,Weighted Average,The Cost of Goods Sold for the August 14 sale is $2,000. After this sale, there are five unit
20、s in inventory at $500:,P1,Weighted Average,Additional purchases were made on August 17 and 28. Twenty-three bikes were sold on August 31.,What is the weighted average cost per unit of items in inventory?,P1,Weighted Average,P1,Weighted Average,Cost of Goods Sold for August 31 = $2,622,P1,Weighted A
21、verage,After the August 31 sale, there are 12 units in inventory at $1,368: 12 $114,P1,Weighted Average,Balance Sheet Inventory = $1,368,Income Statement COGS = $4,622,P1,Weighted Average,Here are the entries to record the purchases and sales entries for Trekking. The numbers in red are determined b
22、y the cost flow assumption used.,All purchases and sales are made on credit. The selling price of inventory was as follows:8/14 $130 8/31 150,P1,Financial Statement Effects of Costing Methods,Because prices change, inventory methods nearly always assign different cost amounts.,A1,Financial Statement
23、 Effects of Costing Methods,Advantages of Methods,First-In, First-Out,Weighted Average,Last-In, First-Out,A1,Tax Effects of Costing Methods,The Internal Revenue Service (IRS) identifies several acceptable methods for inventory costing for reporting taxable income.,If LIFO is used for tax purposes, t
24、he IRS requires it be used in financial statements.,A1,Consistency in Using Costing Methods,The consistency principle requires a company to use the same accounting methods period after period so that financial statements are comparable across periods.,A1,Lower of Cost or Market,Inventory must be rep
25、orted at market value when market is lower than cost.,Can be applied three ways: (1) separately to each individual item. (2) to major categories of assets. (3) to the whole inventory.,Defined as current replacement cost (not sales price). Consistent with the conservatism principle.,P2,Lower of Cost
26、or Market,A motorsports retailer has the following items in inventory:,P2,Lower of Cost or Market,Here is how to compute lower of cost or market for individual inventory items.,P2,Lower of Cost or Market,Here is how to compute lower of cost or market for the two groups of inventory items.,P2,Lower o
27、f Cost or Market,Here is how to compute lower of cost or market for the entire inventory.,P2,Financial Statement Effects of Inventory Errors,Income Statement Effects,Exh. 5.10,A2,Financial Statement Effects of In ventory Errors,Balance Sheet Effects,A2,Inventory Turnover,Shows how many times a compa
28、ny turns over its inventory during a period. Indicator of how well management is controlling the amount of inventory available.,A3,Days Sales in Inventory,Reveals how much inventory is available in terms of the number of days sales.,A3,财务分析的基本方法,比率分析 现金流分析 同型分析 同一张报表的结构分析 趋势分析 同一公司各年度财务数据的对比分析 比较分析
29、不同公司财务数据的对比分析,比率分析,比率构成 短期偿债能力：流动比率、速动比率 长期偿债能力：利息收入倍数、资产负债率 赢利能力：毛利率、经营利润率、净利润率、总资产报酬率、净资产报酬率 营运能力：周转率 成长能力 市场指标,可能引起比率差异的原因？,偿债能力 营运能力 盈利能力,Using the Du Pont Identity,ROE = ROA*EM = PM * TAT * EM Profit margin is a measure of the firms operating efficiency how well does it control costs Total asse
30、t turnover is a measure of the firms asset use efficiency how well does it manage its assets Equity multiplier is a measure of the firms financial leverage,总资产报酬率 （ROA）,总资产报酬率 =净利润率 总资产周转率 净利润 净利润 销售收入 总资产 销售收入 总资产 利润管理 资产管理 差异化战略 成本领先战略,Computing Profit Margin, ROE and ROA,苏宁 vs. 国美,苏宁 vs. 国美,Calcu
31、lating the Du Pont Identity,ROE,ROA,Assets/Equity,Profit margin ratio,Total assetsturnover,2.65%,3.96%,30.35%,9.03%,10.9%,2.77,3.36,3.65%,1.49,2.47,苏宁,国美,VS.,杜邦分析,净资产报酬率,总资产周转率,产权比率,总资产报酬率,净利润率,净资产报酬率=净利润/总资产 * 总资产/净资产=总资产报酬率 * 产权比率 总资产报酬率=净利润/销售收入 * 销售收入/总资产=净利润率 * 总资产周转率,30.35%,10.9%,9.03%,3.96%,3.36,2.77,3.65,2.47,2.65%,1.49%,资产的来源?,有多少 资产?,汽车,批发,总资产报酬率,净利润率,总资产周转率,2%-3%,4%-6%,8%-10%,房地产,西药,零售,石化,水泥,电力、机场、码头、高速公路,农林牧渔,通讯制造,服装,家电,家电行业的总资产报酬率,净利润率,总资产周转率,2-3%,3%,0.75,康佳,小天鹅,美的,万家乐,格力,小鸭,福日,广电,海尔,长虹,春兰,End of Chapter 6,
