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INVENTORY by Mind Map: INVENTORY

1. DEFINITION

1.1. assets

1.2. held

1.2.1. for sales

1.3. production process

1.4. materials or supplies

2. 5 KINDS

2.1. good in transit

2.2. raw materials

2.3. work in process

2.4. finished goods

2.5. merchandise

3. MEARSUREMENT

3.1. value = quantity x unit price

4. DETERMINE

4.1. QUANTITY

4.1.1. inventory system

4.1.1.1. perpetual

4.1.1.2. periodic

4.2. UNIT PRICE

4.2.1. lower

4.2.1.1. cost

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

4.2.1.2. net realisable value

4.2.1.2.1. selling price - estimated cost of completion and selling

5. COST FORMULAS

5.1. FIFO

5.2. The weighted average cost

5.3. COGS

5.3.1. OB inventory + Purchases - CB Inventory

6. CARRIAGE

6.1. inward

6.1.1. cost of transport

6.1.1.1. goods -> business

6.1.2. included in

6.1.2.1. cost of purchases

6.2. outward

6.2.1. cost of transport

6.2.1.1. goods -> customer

6.2.2. selling expense