WGU D102 Financial Accounting
Unit 7
inventory - -goods held for resale
- cost of goods sold - -the costs incurred to purchase or manufacture the
merchandise sold during a period
- raw materials - -materials purchased for use in manufacturing products
- work-in-process - -partially completed units in production
- finished goods - -manufactured products ready for sale
- manufacturing overhead - -the indirect manufacturing costs associated
with producing inventory
- FOB (free-on-board)destination - -a business term meaning that the seller
of merchandise bears the shipping costs and maintains ownership until the
merchandise is delivered to the buyer
- FOB (free-on-board) shipping point - -a business term meaning that the
buyer of merchandise bears the shipping costs and acquires ownership at
the point of shipment
- consignment - -an arrangement whereby merchandise owned by one
party, the consignor, is sold by another party, the consignee, usually on a
commission basis
- perpetual inventory system - -a system of accounting for inventory in
which detailed records of the number of units and the cost of each purchase
and sales transaction are prepared throughout the accounting period
- periodic inventory system - -a system of accounting for inventory in which
cost of goods sold is determined and inventory is adjusted at the end of the
accounting period, not when merchandise is purchased or sold
- purchase return - -when unsatisfactory merchandise purchased by a buyer
is returned to the supplier
- purchase discount - -when a retailer gets a reduction from their
wholesalers for paying quickly
Unit 7
inventory - -goods held for resale
- cost of goods sold - -the costs incurred to purchase or manufacture the
merchandise sold during a period
- raw materials - -materials purchased for use in manufacturing products
- work-in-process - -partially completed units in production
- finished goods - -manufactured products ready for sale
- manufacturing overhead - -the indirect manufacturing costs associated
with producing inventory
- FOB (free-on-board)destination - -a business term meaning that the seller
of merchandise bears the shipping costs and maintains ownership until the
merchandise is delivered to the buyer
- FOB (free-on-board) shipping point - -a business term meaning that the
buyer of merchandise bears the shipping costs and acquires ownership at
the point of shipment
- consignment - -an arrangement whereby merchandise owned by one
party, the consignor, is sold by another party, the consignee, usually on a
commission basis
- perpetual inventory system - -a system of accounting for inventory in
which detailed records of the number of units and the cost of each purchase
and sales transaction are prepared throughout the accounting period
- periodic inventory system - -a system of accounting for inventory in which
cost of goods sold is determined and inventory is adjusted at the end of the
accounting period, not when merchandise is purchased or sold
- purchase return - -when unsatisfactory merchandise purchased by a buyer
is returned to the supplier
- purchase discount - -when a retailer gets a reduction from their
wholesalers for paying quickly
