Chapter II Inventory
Section initial measurement of inventories
Theory three axes: confirm initial measurement, subsequent measurement, measurement disposal
an inventory confirmation
1, consumption: ① raw materials (raw materials, semi-finished products purchased) ② ③ working material goods in transit - consumables and packaging materials ④ processing materials
2, in the product: production costs
3, for sale: ① stock ② delivered goods (such as: product exhibition) ③ goods on consignment (√), consignment goods (×)
Note: construction materials do not belong to the enterprise inventories
[Note 1] sales procedures have been completed, but did not purchase units at the end of the extraction of the product, not as a corporate stock, commodity and should be treated as escrow, set up a separate escrow commodity for future reference book to register. (Not business stock)
[Note 2] to be accepted products processing and manufacturing to other units on behalf of the repair process to repair the product. (In inventory enterprises)
Second, the initial measurement of inventories
carried at historical cost measurement
(a) The cost of purchased inventory (from procurement to all expenditure before storage)
purchase cost (price, taxes and fees)
① purchase price (not the price including VAT)
② procurement costs (transport, handling, insurance, storage before sorting costs) (does not include travel expenses, procurement agencies funding)
③ related taxes (import duty and excise duty)
④ transit reasonable loss (non-normal consumption (such as natural disasters) are not included in the cost)
[Note 1] a reasonable consumption of transit: means naturally product in transit, because the nature of commodity, and other natural conditions and equipment, occurring live the inevitable loss.
[Note 2] reasonable consumption in transit, will not affect the cost of inventories accounted for, that cost is still recorded the purchase price and related acquisition costs, no separate deduction of reasonable wear and tear; only affect the unit cost of inventory.
Consolidated statements: ① accounts of raw materials (entry) ② statement accounts inventory (report)
(B) the cost of processing the acquired inventory of
product costs (material, labor, cost)
① direct material costs (cost of purchased inventory)
② direct costs of workers (production workers compensation)
③ manufacturing costs
Materials workshop occurred, indirect production costs than labor costs
① material consumption machine, workshop manager salary, office expenses, fixed assets repairs, depreciation, utilities, labor protection costs
downtime losses during seasonal and ② repair, direct that the product design costs, production stage must warehousing costs
[Note]
1, abnormal production losses: natural disasters (operating expenses) man-made disasters (management fees)
2, may direct that the product design costs: a specific customer (object-oriented) the cost of inventories (product design design costs should normally occurs through profit or loss)
3, storage charges
① until stock purchase storage: procurement costs included in inventory
after inventory purchases ② warehousing pre-production: profit or loss
③ production process : in order to reach the next stage of production storage costs are necessary should be included in inventory costs (production)
4, product marketing
when companies purchase goods for specific advertising and marketing activities without obtaining the goods to the customer advance payment, should be used as prepayments accounting treatment of the income statement (cost of sales) to be made when the related goods
( Inventories iii) special way
| Overage | Replacement cost |
|---|---|
| Investee | The value of the investment contract to determine, except the unfair value of the contract or agreement. In the case of investment contract or agreement value is not fair, the fair value of the stock as the entry value |
| – | – |
| Non-monetary assets exchange | Swapped out asset value (fair or book) + related taxes |
| debt reorganization | The fair value of assets acquired |
| – | – |
| Business Combinations | Change in the asset value (fair or book) |
Section II Inventory subsequent measurement
First, the measurement methods of inventories
The valuation:
① FIFO
② weighted average late-time
inventory average unit cost = Total cost ÷ total number = (the beginning of the current period acquired Availability Availability balance Amount Amount +) / (early Availability + number of balance current inventory quantity purchased)
inventory costs, the cost issue
③ weighted moving average method (not test)
④ individual valuation method (not test)
two, carry-over of inventory cost
(a) carry-over material cost
by: ① workshop production of products (cost of production)
② shop management department general consumption (manufacturing costs)
③ administrative departments consumption (administrative expenses)
④ sales sales (other operating expenses)
⑤ projects (under construction)
credit: raw materials,
(b) inventory cost of goods carried forward
1, has sold inventory, the cost of carry-over costs included in the main business:
by: cost of
credit: stock merchandise
2, at the same time, the carry-over inventory provision for diminution in value
(c) working materials
companies working material (such as packaging materials and consumables (snakeskin bag, bags)) and compliance with the inventory confirmation define conditions Use graded according to the number included in the cost.
A small amount, while recipients included one-time costs, in order to simplify accounting, management units to strengthen the physical, should be registered on a reference book.
Section inventory inventory inventory
First, an inventory of principles
| Account | Various business inventory inventory gains and losses, should be dealt with in the bill before the end, after the end of treatment, a premium property to be treated no balance |
|---|---|
| After approval | Overage: offset administrative expenses; shortage: should deduct the scrap value can recover insurance compensation and human negligence compensation, as a net loss. The reason transceivers belong metering errors and mismanagement caused - administrative costs; belonging to natural disasters and other causes - operating expenses |
Inventory due to abnormal causes shortage or damage, according to the provisions of the VAT is not deductible input tax should be transferred out.
Abnormal losses, is the result of mismanagement of theft, loss, loss of mildew and rot, and the cargo was confiscated by law enforcement agencies or forces of self-destruction
because losses resulting from non-management do not turn out:
1, the normal operating losses
2, natural disaster losses
The fourth quarter ending measurement of inventories (very important)
First, the end of inventory measurement principles
1, the balance sheet date, inventories should cost and net realizable value.
Lower cost than net realizable value (not accounting treatment)
cost is higher than the net realizable value (recognized assets impairment), as the difference provision for the inventory, profit or loss. Prudence in claim
2, the net realizable value
net realizable value = estimated selling price - cost estimation completion - related taxes
① net realizable value: selling products (no finished cost), sold material (no completion costs), the material processed into a product (completed costs)
② estimated selling price: contract, no contract (the amount of inventory is greater than the number of contracts)
③ estimated costs of completion: to be processed (there is) not working (no)
④ related taxes: whether the same contract, except
two, ending inventory impairment of treatment
| Provision | Inventory cost than net realizable value, confirming the loss of inventory in advance of sales, profit or loss (impairment loss), and to reduce the book value of survival (provision for inventories) |
|---|---|
| Back to | Transfer the amount to the balance of inventory impairment write-downs to zero. |
① Provision
By: asset impairment loss
Credit: inventory devaluation
② back (something)
by: inventory impairment
Credit: impairment losses
③ reseller (something that is not)
by: inventory impairment
loans: Cost
[Note] inventory carrying cost = book balance of
the book value of inventories = book balance - inventory provision
