Chapter 8

Chapter 8

1. Average cost method

2. Cost of goods

3. f.o.b destination

4. f.o.b shipping point

5. Finished good inventories

6. Gross method

7. Inventory

8. Neth method

9. Puchase discount

10. Perpetual Inventory system

    • Continuous record of inventory

11. 1) Raw material

12. 2) Work in progress

13. 3) Finished goods

14. Product costs

    • attach and recorded to inventory account

15. CHAPTER 9

    • Lower of cost
      • Net realizable Value
    • Inventories recorded at their cost
    • A company abandons the historical cost principle when the future utility (revenueproducing ability) of the asset drops below its original cost.