Flashcards
CH 6 F.A
Cards in this deck (12)
- 1Raw materials inventoryitems used in the production of products
- 2work-in-progress (WIP) inventoryitems that are partially completed
- 3finished goods inventoryitems fully manufactred and ready for sale
- 4just-in-case inventoryinventory held as a buffer just in case unexpected problems occur
- 5F.O.B shipping pointbuyer assumes ownership at the time the carrier accepts the item from the seller
- 6F.O.B destinationseller maintains ownership until the buyer takes posession
- 7Physical flow of goodsactual flow of goods from acquisition to sale
(order of what sells first) - 8accounting cot flow assumptionassumed flow of the COGS from acquisition to sale
- 9specific identification methodused by manufactures producing high-value products that can be easily identified
cars, planes, battleships, etc - 10weighted average costaverages the cost of purchases so that units are valued at an average, with each unit valued at the same cost
each new purchase causes a re-averaging of unit costs - 11End Inv. + COGS =Goods available for sale
- 12Beg inv. + purchases =Goods available for sale
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- undergraduate Financial Accounting Flashcards on CH 6 F.A, created by Brittany Shurack on 09/02/2022.
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- Brittany Shurack
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