In this section, we’ll explain the accounting of inventory and its relationship with cost of goods sold. By the end…
Retail method of estimating inventory can be used by retailers maintaining the record of both the inventory’s cost as well…
Gross profit method of estimating inventory uses the historical gross profit margin ratio to estimate the cost of goods sold.…
Why some entities need to estimate inventory? Answer to this question will be given in this post In perpetual inventory…
Inventory ageing analysis is a useful analysis based on inventory ageing report. But what is an inventory ageing report? It…
All goods and products have a life and after that life, they become useless. Slow-moving inventory refers to such inventory…
Assets are generally recorded in the books of account as per historical cost principle. Historical cost principle restricts the accountants…
There are two systems of inventory record keeping: Periodic inventory system Perpetual inventory system Inventory valuation methods can be used…
Where inventory consists of small number of large or precious items, it is possible to identify individual items of inventory…
Inventories are goods held by an entity for sale and materials held by an entity for manufacturing goods for sale.…