会计学基础第七章答案.doc
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Chapter 7
Reporting and Interpreting Inventories and Cost of Goods Sold
ANSWERS TO QUESTIONS
1. Three goals of inventory management are to make or buy products (1) in sufficient quantities to avoid stock-outs (which could result in lost sales revenue and decreases in customer satisfaction), (2) that provide expected levels of quality, (3) at the lowest possible cost by minimizing the costs of obtaining and carrying inventory (purchasing, production, storage, spoilage, theft, obsolescence, and financing).
2. Merchandisers hold merchandise inventory, which usually is acquired in a finished condition and is ready for sale without further processing.
Manufacturers often hold three types of inventory, with each representing a different stage in the manufacturing process:
Raw materials inventory includes materials that eventually are processed further to produce finished goods. Items are included in raw materials inventory until they enter the production process, at which time they become part of work in process inventory.
Work in process inventory includes goods that are in the process of being manufactured, but are not yet complete. When completed, work in process inventory becomes finished goods inventory.
Finished goods inventory includes manufactured goods that are complete and ready for sale. At this stage, finished goods are treated just like merchandise inventory.
3. When goods are sold FOB destination, their cost is removed from the inventory account and reported as an expense only when the goods reach their destination. Because the goods were shipped on September 30, they will not reach their destination until October. Consequently, the company should continue to include the cost of the goods in inventory on September 30.
4. Goods available for sale is the sum of the beginning inventory and the amount of goods purchased or made during the period. Cost of goods sold is the cost of goods actually sold, which can be determined by subtracting the cost of endi
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