会计英语九章.pptVIP

Manufacture Company Merchandise Company Chapter 1-7 Manufacture Company Chapter 8 Financing Purchase Cost Revenue Financing One of the primary sources to increase owners’ equity is the investments of cash or other assets from the owners to the business.-----cash assets and non-cash assets Cash Patent Equipment Journal entry: Dr. Cash Patent Equipment Cr. Capital There are two aspects in the debt financing: principal and interest. Dr. Cash Cr. Loan Dr. Interest payable Interest expense Cr. Cash (see P121) obtained payment Purchase Raw materials purchasing Raw materials are the basic materials and parts that have been acquired and are available for future conversion into salable products. Dr. Raw material Cr. Cash(accounts payable) The cost of a fixed asset include all the expenditures necessary to obtain the asset to get it ready for the use intended by the purchaser. The cost of fixed asset = price of the fixed asset + sales tax + freight + installation + … Dr. equipment Cr. Cash ( accounts receivable, notes payable) Cost The method to calculated the cost of good sold is different between merchandise company and manufacture company. = + - Cost of good sold Inventory (beginning) Net Purchase Inventory (ending) Separate Manufacturing from Administrative Manufacturing Costs Raw materials Direct labor Overhead Operating Costs Selling Administrative Manufacturing Costs Raw materials inventory – cost of items of raw material being held for production + freight costs Work-in-process inventory – cost of products being processed Finished goods inventory – manufacturing cost of products that have been completed and are waiting shipment to customers Direct materials used Manufacture overhead Direct labor Cost of goods sold Cost of Goods Manufactured Work-in- Process inventory Finished Goods Inventory Direct materials are those raw material used in manufacture which can