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.
Edited at 2023-12-05 19:21:05One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
Project management is the process of applying specialized knowledge, skills, tools, and methods to project activities so that the project can achieve or exceed the set needs and expectations within the constraints of limited resources. This diagram provides a comprehensive overview of the 8 components of the project management process and can be used as a generic template for direct application.
One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
Project management is the process of applying specialized knowledge, skills, tools, and methods to project activities so that the project can achieve or exceed the set needs and expectations within the constraints of limited resources. This diagram provides a comprehensive overview of the 8 components of the project management process and can be used as a generic template for direct application.
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.