Term
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Definition
| Tangible property held for sale in the normal course of business or used in producing goods or services for sale |
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Term
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Definition
| Goods held for resale in the ordinary course of the business |
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Term
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Definition
| Items acquired for the purpose of processing into finished goods |
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Term
| Work In Progress Inventory |
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Definition
| Goods in the process of being manufactured |
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Term
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Definition
| Manufactured goods that are complete and ready fo sale |
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Term
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Definition
| The earnings of employees who work directly on the products being manufactured |
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Term
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Definition
| Manufacturing costs that are not raw material or direct labor costs |
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Term
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Definition
| The sum of the begining inventory and purchases for the period |
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Term
| Specific Identification Method |
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Definition
| Identifies the cost of the specific item that was sold |
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Term
| First in First out Method |
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Definition
| Assumes that the first goods purchased are the first goods sold |
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Term
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Definition
| The most recently purchased units are sold first |
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Term
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Definition
| Uses the weighted average unit cost of the goods available for sale for both cost of goods sold and ending inventory |
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Term
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Definition
| A valuation method departing from the cost principle; it serves to recognize a loss when replacement cost or net realizable value drops below cost |
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Term
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Definition
| The current purchase price for identical goods |
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Term
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Definition
| The expected sales price less selling costs |
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Term
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Definition
| a contra-asset for the excess of FIFO over LIFO inventory |
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Term
| Perpetual Inventory System |
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Definition
| A detailed inventory record is maintained, recording each purchase and sale during the accounting period |
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Term
| Periodic Inventory System |
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Definition
| Ending inventory and cost of goods sold are determined at the end of the accounting period based on a physical count |
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