Formula sheet
Chap 6: Inventory
1. Beginning Inventory + Purchases - COGS = Ending Inventory
2. Perpetual vs Periodic
- Perpetual method records COGS after each sale
Dr. COGS
Cr. Inventory
Dr. Receivable
Cr. Sales
- Perpetual method records inventory purchase by INVENTORY
Dr. Inventory
Cr. Cash
3. Calculate COGS and Ending Inventory under FIFO, Periodic and Perpetual
a. Identify the units in Ending Inventory
Units in Ending Inventory = Units in Beginning Inventory + Total Units Purchases - Total Units S
b. Calculate Ending Inventory
Ending inventory = Units in LATEST purchase * price of purchase + Units in SECOND LATEST * p
Until: units in purchases accounted = units in inventory
c.Calculate Purchases
Purchases = Units in purchase 1 * price of purchase 1 + Units in purchase 2 + price of purchase
d. Calculate COGS
COGS = Beginning inventory (given) + Purchases (calculated above) - Ending inventory (calcula
e. Close Purchases (Periodic only)
Dr. COGS
Dr. Ending Inventory
Cr. Purchase
Cr. Beginning Inventory
4. Calculate COGS and Ending Inventory under Average Cost, Perpetual
Make the reallyy long table, refer back to the Chap 6 Excel file on UM Learn
5. Calculate COGS and Ending Inventory under Average Cost, Periodic
a. Calculate unit cost
Unit cost = (Beginning inventory + Purchases) / (Units in beginning inventory + Units purchase
B. Calculate ending inventory
Ending inventory = Unit cost * Total units in Ending Inventory
c. Calculate COGS
COGS = Unit cost * Total units sold
Chap 11
1. Calculate cashflow investing in NET capital assets
Beginning Equipment + Purchase of additional equipment - Sale of existing equipment(Carrying value) - D
a. Beginning Equipment is generally given, but if it's not, it doesn't matter
b. Purchase of additional equipment = Cash that you paid for the Equipment
THIS GIVES YOU A CASH OUTFLOW ON THE CASH FLOW STATEMENT
c. Proceeds from sale (Cash outflow) = Carrying value of sold equipment + Gain on disposal
if there is a gain on disposal
Proceeds from sale (Cash outflow) = Carrying value of sold equipment - Loss on disposal
if there is a loss
NOTE: You are required to calculate "Proceeds from sale" to construct the cash flow statemen
THIS GIVES YOU A CASH INFLOW ON THE CASH FLOW STATEMENT
d. Ending balance is given
2. Calculate cash flow related to common shares
Beginning Common Shares + value of issuance of shares - Book value of share buybacks = Ending common
a. Beginning common shares is generally given
b. value of issuance of shares = proceeds from the issuance
THIS GIVES YOU A CASH INFLOW ON THE CASH FLOW STATEMENT
c. Book value of share buybacks = Number of shares bought * Book value of each share
NOTE:
- Number of shares bought is given
- Book value of each share = (Total dollar amount of "common shares" at the time
THIS GIVES YOU A CASH OUTFLOW
d. Ending common shares is given
- Periodic method record COGS at the end of reporting period
Dr. Receivable
Cr. Sales
- Periodic method records inventory purchase by PURCHASES
Dr. Purchases
Cr. Cash
+ Total Units Purchases - Total Units Sold
urchase + Units in SECOND LATEST * price of purchase + Units in THIRD LATEST purchase * price of purchase + …
Units in purchase 2 + price of purchase 2 + …
ed above) - Ending inventory (calculated above)
el file on UM Learn
beginning inventory + Units purchased)
xisting equipment(Carrying value) - Depreciation Expense = Ending balance
it doesn't matter
d for the Equipment
ASH FLOW STATEMENT
sold equipment + Gain on disposal
d equipment - Loss on disposal
" to construct the cash flow statement, other information will be given
H FLOW STATEMENT
e of share buybacks = Ending common shares
H FLOW STATEMENT
ght * Book value of each share
ount of "common shares" at the time of buyback) / (Number of "shares issued and outstanding" at the time of the buyback)
me of the buyback)
