MindMap Gallery Intermediate Accounting Practice Chapter 2 Inventory
An article about the 2024 Intermediate Accounting Practice Chapter 2 Inventory Mind Map, including confirmation, initial measurement, Let’s learn together about final measurement and so on.
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This infographic, created using EdrawMax, outlines the pivotal moments in African American history from 1619 to the present. It highlights significant events such as emancipation, key civil rights legislation, and notable achievements that have shaped the social and political landscape. The timeline serves as a visual representation of the struggle for equality and justice, emphasizing the resilience and contributions of African Americans throughout history.
This infographic, designed with EdrawMax, presents a detailed timeline of the evolution of voting rights and citizenship in the U.S. from 1870 to the present. It highlights key legislative milestones, court decisions, and societal changes that have expanded or challenged voting access. The timeline underscores the ongoing struggle for equality and the continuous efforts to secure voting rights for all citizens, reflecting the dynamic nature of democracy in America.
This infographic, created using EdrawMax, highlights the rich cultural heritage and outstanding contributions of African Americans. It covers key areas such as STEM innovations, literature and thought, global influence of music and arts, and historical preservation. The document showcases influential figures and institutions that have played pivotal roles in shaping science, medicine, literature, and public memory, underscoring the integral role of African American contributions to society.
Chapter 2 Inventory
confirm
1. The economic benefits related to the inventory are likely to flow into the enterprise
2. The cost of the inventory can be measured reliably
initial measurement
1. Outsourcing
Purchase price: the price indicated on the invoice (excluding deductible input tax)
Related taxes and fees: import duties, import consumption tax, input tax that cannot be deducted
Other expenses: transportation fees, loading and unloading fees, insurance fees, packaging fees, storage fees before warehousing, reasonable losses, etc.
2. Circulation enterprises (purchasing costs are collected first and distributed according to the situation at the end of the period)
The purchase cost of sold goods is included in the current profit and loss (main business cost)
subtopic
subtopic
The purchase cost of unsold goods is included in the ending inventory cost.
3. Obtained by processing
Consigned processing materials
Raw materials, processing fees, handling fees, transportation fees, non-deductible value-added tax
sale tax
Sell directly after repossession
Included in "entrusted processing materials"
Continue to process taxable products after recovery
Included in "taxes payable - consumption tax payable"
self-produced
4. Investor investment: (The cost of investor investment shall be determined according to the value stipulated in the investment contract or agreement, except where the value stipulated in the contract or agreement is unfair.)
End of period measurement
Principle (measurement of the lower of cost and net realizable value)
Judgment of Inventory Impairment Signs
Net realizable value is lower than cost
(1) The market price of inventories continues to fall, with no hope of recovery in the foreseeable future.
(2) The cost of the products produced by the enterprise using the raw materials is greater than the sales price of the products.
(3) Due to product upgrading, the company’s original inventory of raw materials no longer meets the needs of new products.
(4) Market demand changes due to obsolescence of goods or services provided by the enterprise or changes in consumer preferences, resulting in a gradual decline in market prices.
(5) Other circumstances that are sufficient to prove that the inventory has actually been impaired.
Net worth is "0"
① Inventories that have become moldy and spoiled.
② Inventories that have expired and have no transfer value.
③ Inventories that are no longer needed in production and have no use value or transfer value.
④Other inventories that are sufficient to prove that they have no use value or transfer value.
The signs of impairment are eliminated (should be reversed within the amount of inventory depreciation provisions that have been accrued)
1. Reversal: Debit: Inventory depreciation reserve Credit: Asset impairment loss
2. Transfer of sold products: borrow: main business costs, etc. Inventory impairment Credit: Inventory goods
Measurement method
Products (sold directly)
Have a contract
Net realizable value = contract price – estimated sales tax
No contract
Net realizable value = market price – estimated sales tax
Need to process (raw materials): mainly depends on whether the product is impaired
If there is no impairment of products, there will be no impairment of materials, and they can be recorded at cost.
Product impairment
Net realizable value of materials = estimated selling price of the product - processing costs to be incurred until completion - estimated sales tax
Borrow: Asset impairment loss Credit: Provision for inventory decline in value
The calculation is the ending balance, taking into account the beginning balance.