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Mi qe SUPPLIER —_ EE MERCHANDISING - customer E1-RECORD PURCHASE Soe Estes 2£2; RECOGNIE REVENUE DR IVENTORY x DR CASH en, CRASH x CRREVENE x ; ( JE3- RELEASE COST OF GOODS SOLD ‘eumuwonme oo PRAERPSERENS swat Woneacron POST TO ACCOUNTS IN GENERAL LEDGER cas INVENTORY, ou ¥ % max x x x ‘raccoon muuczver Ami en IER TR Ss AORN EEE o-----._ SUMMARIZE IN FINANCIAL STATEMENTS BALANCE SHEET INCOME STATEMENT ASSETS $ LIABILITIES AND EQUITY s ‘cupaenr assers spares Reounrsreceuasne Sow CUnaeht Dasasres i RVENTORY +e TOTAL UABUTES a NONCURRENT ASSETS _i muss Bra. i a =eA peRcoC NERY CHC pees eemmTceY SboTOS 1 OF GOONS RALANLEFOR SKE Sir COST OF GCN SLD INVENTORY SYSTEMS PERIODIC UPDATES INVENTORY ACCOUNT AT REGULAR INTERVALS. sve Last PeRCDs BRMEFRCD GEESE OREN a 3 LUPOATE CIDSNG IwENTORY |AND CALCULATE COST OF GO00S SOLD Kees RRS ses, Seb Gi RasvoReTHE PROBLEM WHEN INVENTORY COST PRICES ARE CHANGING HOW MUCH COST SHOULD FLOW TO COST OF GOODS SOLD |AND HOW MUCH SHOULD BE RETAINED IN CLOSNG INVENTORY? i Tia a op Rowtecae Aer Y saab THE SOLUTION “COST FLOW ASSUMPTIONS FIFO IFO. = ACO FIRST IN FIRST OUT LAST IN FIRST OUT naw a CoET HOW TABLE boi RIB Ma RET SRS EERIE step2 atte WHA OUKNOW srep3 smp3 sepa raced ne aious af Lene aurus Lene danas "1 - ‘STEP 4 = cece cost oe mn CALCULATE COST OF GOODS SOLD “ coo BE RE EB Rovio CALC ATE CO RVEVIORY GACULATON - 3 ai Copeeaywecoee y so COBH ARERR ERE MD COROT eRe : agi ees ef oem anyancronsat SHIRA Come HER, Ok ° ane gut WAAR UEC ‘000CALCULATING DEPRECIATION sm ‘WRITE DON WHAT YOURNOW seo SE PRES ae , ACERS LEN eeeneae u ODE RIES! Sh HERES taser cee DEPRECIATION \ ‘THE PROCESS OF REDUCING THE BOOK VAIUE OF A TANGALE FRED ASSET conaen asset [DUE TO USE WEAR AND TEAR. THE ARGS OF Te, OR GRECLESCENCE | Asser oxscrnion cescaeron OggAIN ogee a Semecarennemon | s.ceesro uae a ae a Feu ALE a beste : USB ULLFE aes ——— Poeun aire suo neove saro@Nt wwe DEPRECIATION SCHEDULE ACCUMULATED, DEPRECIATION (8) S@2~) 20K2 sey 20%N ‘APMED COST DEPRECIATION METHOD WHERE THE ‘AN ACCELERATED VAREABLE COST DEPRECIATION METHOD EXPENSES SPREADEVEMY OVERTIS USEFULL "WHERE THE EXPENSE [S HGHER IN EARLY YEARS SUM OF THE YEAR'S DIGITS (SYD) * “* UNITS OF PRODUCTION AN ACCELEUNED OnuMeLE CO DERE METICO Aamasus Ont ReMee MN SE oD WEE TIE SWiRHE ME OPOEE CHER EAR YEARE ‘POSES MO ACTUAL PSEAL USEF AST DSETREEAION yo neFRECLATON RATE x UCPRECABLE COST RRECADON pepaecuamen Fem UNT x UNTS PRODUCED Ran SU ST Met ‘yo USULLEE x ures