Chapter 6Inventory
1 Chapter 6 Inventory
Inventory Defined: Inventory refers to various assets that arestocked for the purpose of sale, productionor consumption during the process ofproduction for a business
Inventory Defined • Inventory refers to various assets that are stocked for the purpose of sale, production or consumption during the process of production for a business
1Inventory Systems存货制度
Ⅰ Inventory Systems 存货制度
Inventory SystemsPerpetual inventory system永续盘存制Periodic inventory system定期盘存制
Perpetual inventory system 永续盘存制 Periodic inventory system 定期盘存制 Inventory Systems
Perpetual vs. Periodic Systems.Perpetualinventory system- Detailed records of the number of units and thecost of each purchase and sale are preparedTHROUGHOUT the period.Periodic inventory system- System of accounting where cost of goods sold isdetermined and inventory is adjusted at theEND of the accounting period, not whenmerchandise is purchased or sold
5 Perpetual vs. Periodic Systems • Perpetual inventory system – Detailed records of the number of units and the cost of each purchase and sale are prepared THROUGHOUT the period. • Periodic inventory system – System of accounting where cost of goods sold is determined and inventory is adjusted at the END of the accounting period, not when merchandise is purchased or sold