INVENTORY

1. MEARSUREMENT

1.1. value = quantity x unit price

2. DETERMINE

2.1. QUANTITY

2.1.1. inventory system

2.1.1.1. perpetual

2.1.1.2. periodic

2.2. UNIT PRICE

2.2.1. lower

2.2.1.1. cost

2.2.1.1.1. cost of purchase + cost of conversion + other costs - trade discounts,rebates..

2.2.1.2. net realisable value

2.2.1.2.1. selling price - estimated cost of completion and selling

3. COST FORMULAS

3.1. FIFO

3.2. The weighted average cost

3.3. COGS

3.3.1. OB inventory + Purchases - CB Inventory

4. CARRIAGE

4.1. inward

4.1.1. cost of transport

4.1.1.1. goods -> business

4.1.2. included in

4.1.2.1. cost of purchases

4.2. outward

4.2.1. cost of transport

4.2.1.1. goods -> customer

4.2.2. selling expense

5. DEFINITION

5.1. assets

5.2. held

5.2.1. for sales

5.3. production process

5.4. materials or supplies

6. 5 KINDS

6.1. good in transit

6.2. raw materials

6.3. work in process

6.4. finished goods

6.5. merchandise