Ending Work in Process

At the end of an accounting period a manufacturing business will have goods which are only partially completed. These goods will be included in the balance sheet current assets as work in process (WIP), under the heading of inventory. Work in process is sometimes referred to as work in progress.

Ending Work in Process March 10th, 2017Team
Read more

Inventory Count Sheet Template

This free inventory count sheet template can be used by a business to produce inventory count sheets for recording the results of a physical inventory count at the end of an accounting period. Free PDF download.

Inventory Count Sheet Template November 6th, 2016Team
Read more

Gross Profit Method of Estimating Inventory

In the absence of a physical inventory count at the end of an accounting period, the gross profit method is a method of estimating the value of ending inventory using historical gross profit percentages.

Gross Profit Method of Estimating Inventory November 6th, 2016Team
Read more

Specific Identification Inventory Method

The specific identification inventory costing method is a way of determining the cost of goods sold and the value of the ending inventory. Under the specific identification inventory method, it is assumed that each unit of inventory can be identified and traced from purchase to sale.

Specific Identification Inventory Method November 6th, 2016Team
Read more

Lower of Cost or Market

Lower of cost or market is a term used to refer to the method by which inventory is valued and shown in the balance sheet of a business. The lower of cost and market rule states that the inventory must be shown at the lower of cost or replacement cost subject to upper and lower limits on replacement cost.

Lower of Cost or Market November 6th, 2016Team
Read more

Retail Inventory Method

The retail inventory method is a method of estimating the value of closing inventory in the absence of a physical inventory count at the end of an accounting period.

As the name implies, the retail method is used primarily by retailers who often maintain their memorandum inventory records at retail values. The method involves the follows steps.

Retail Inventory Method November 6th, 2016Team
Read more

Inventory Accounting System

A business can account for its inventory using one of two accounting inventory systems either the periodic or perpetual inventory system.

The period inventory system is less time consuming to maintain but does not provide details of the inventory and costs of sales during the accounting period. In contrast, the perpetual inventory system requires details of each inventory movement to be recorded, but is ideal in situations such as a retail environment, where accurate levels of inventory are required at all times.

Inventory Accounting System November 6th, 2016Team
Read more

Accounting for Insurance Proceeds

The accounting for insurance proceeds journal entries below act as a quick reference, and set out the mdct.ru postings required to deal with an insurance claim for damaged inventory.

Accounting for Insurance Proceeds December 6th, 2017Team
Read more

Cost of Inventory Determination

The cost of inventory includes the costs of purchase, the costs of conversion, and other costs of bringing the inventory to its present location and condition.

Cost of Inventory Determination August 8th, 2017Team
Read more

LIFO Reserve

The LIFO reserve is an account used to reconcile the difference between the FIFO and LIFO methods of inventory valuation, when a business is using the FIFO method as part of its accounting system but is using the LIFO method to report in its financial statements.

LIFO Reserve November 6th, 2016Team
Read more

You May Also Like


Related pages


monthly interest rate excelar days outstanding formulathe difference between periodic and perpetual inventory systemsquick asset ratio formulaaccumulated depreciation appears on thehow to calculate depreciation of fixed assetsaccounts receivable with recourserequisition of materialsretirement of bonds payableis merchandise inventory a current assetbeginning inventory plus the cost of goods purchased equalsfree accounting ledger paperdefine daybookcreditor days definitionbond formula calculatorledger entries examplesoverhead expenses examplesbeginning finished goods inventoryhow to calculate income tax payable on balance sheetpayable ledger control accountfuture value of annuity formulaeffective interest method of amortizationdebit versus credit accountingwhat fob means in freightpv pmthow to calculate the present value of an annuityprepayment on balance sheetunearned revenue in balance sheetgeneral ledger layoutpresent value of a perpetuitymarkup vs margin formulaoutstanding cheques bank reconciliationjob order costing entriesis unearned revenue an assetaccounting general journal exampleshow to treat disposal of fixed assetaccounts receivable written offis bonds payable a current liabilitybad debts provisionfob shipquick ratio calculationexcel accounts spreadsheetjournal entries for dummiesgross profit calctvm formulabookkeeping journal entries examplesconstant growth model excelhow to calculate ending cash balancepv annuityreconcile retained earningsretained earnings on balance sheet examplensf accounting definitionmargin and markupdupont analysevariable contribution marginhow to calculate fifowhat is consigned inventoryexcel formula irrcalculating interest rate in exceldefine bills receivableunearned revenue adjusting entrythe specific identification method of inventory costingaccounting for accrued vacationrestaurant bookkeeping templatespre operative expenses accounting treatmenthow to calculate present value of cash flows in excelweighted average cost of goods soldcash and equivalents turnoverthe number of days sales in receivablesnet realizable value equationaccruals entriesdifference between imprest and petty cashpartnership profit sharing ratioadvance cash receipt format