WILEY

IFRS EDITION
Prepared by
Coby Harmon
University of California, Santa
6-1 Barbara
Westmont College
 PREVIEW OF CHAPTER 6

Financial Accounting
IFRS 3rd Edition
Weygandt ● Kimmel ● Kieso
6-2
 CHAPTER

6 Inventories
LEARNING OBJECTIVES
After studying this chapter, you should be able to:

1. Menjelaskan cara mengklasifikasikan dan menentukan Jumlah

Persediaan.
2. Menjelaskan akuntansi untuk persediaan dan menerapkan metode arus
biaya persediaan.
3. Menjelaskan pengaruh keuangan dari asumsi arus biaya persediaan.
4. Menjelaskan lower-of-cost-or-net realizable value basis dari Akuntansi
untuk persediaan.
5. Menunjukkan pengaruh kesalahan persediaan pada laporan keuangan.
6. Menghitung dan menginterpretasikan dan analisis persediaan.

6-3
 Classifying and Determining Inventory
Learning Objective 1
Discuss how to classify and
Classifying Inventory determine inventory.

Merchandising Manufacturing
Company Company

Satu Klasifikasi: Tiga Klasifikasi:

 Inventory  Bahan Baku (Raw Materials)

•PETUNJUK BERMANFAAT  Barang Dalam Proses

(HELPFUL HINT) (Work in Process)
Terlepas dari klasifikasinya,
perusahaan melaporkan semua  Barang Jadi (Finished Goods)
persediaan dalam Aset Lancar
pada laporan posisi keuangan.
6-4 LO 1
 AKUNTANSI PADA ORGANISASI
Halangan Besar (A Big Hiccup)
JIT dapat menghemat banyak uang bagi perusahaan, tetapi bukannya tanpa
risiko. Gangguan yang tidak terduga dalam rantai pasokan dapat menghabiskan
banyak uang bagi perusahaan. Produsen mobil Jepang mengalami gangguan
seperti itu ketika gempa bumi berskala 6,8 menyebabkan kerusakan besar pada
perusahaan yang memproduksi 50% cincin piston mereka. Harga cincin itu
sendiri hanya $ 1,50, tetapi Anda tidak dapat membuat mobil tanpa cincin itu.
Tidak ada pemasok lain yang dapat dengan cepat mulai memproduksi cincin
dalam jumlah yang cukup untuk memenuhi spesifikasi yang diinginkan.
Akibatnya, para pembuat mobil terpaksa menghentikan produksinya selama
beberapa hari — kehilangan puluhan ribu mobil.
Sumber: Amy Chozick, “A Key Strategy of Japan’s Car Makers Backfires,”
Wall Street Journal (20 Juli 2007).

6-5 LO 1
 AKUNTANSI INVENTORY
1. Identifikasi khusus 
1 2
A
I PENCATATAN PENILAIAN 2. Fifo  A atau B
N 3. Lifo  A atau B
V 4. Rata-rata:
A. Physik -Sederhana A
E M (Periodik) Harga Pokok
-Tertimbang A
N E -Bergerak  B
T T
1. LCOM (LCNRV)
O O 2. Taksiran
R D B. Perpetual - Analisis Laba Kotor
Selain
Y A - Harga Pokok Eceran:
(Permanen) Harga Pokok
-lcom, Rata-rata, FIFO,
dan LIFO(MTKPRp)
 Menentukan Jumlah Persediaan
Perhitungan Phisik terhadap Persediaan dilakukan karena 2 hal

Perpetual System
1. Untuk memeriksa keakuratan Catatan Persediaan
2. Untuk Menentukan Jumlah Persediaan yang hilang akibat bahan baku yang
terbuang, pengutilan (shoplifting), atau pencurian oleh karyawan.

Periodic System
3. Untuk menentukan Persediaan yang ada di perusahaan (inventory on hand).
4. Untuk menentukan cost of goods sold untuk periode tersebut.

6-7 LO 1
 Determining Inventory Quantities
PERHITUNGAN PHISIK PERSEDIAAN (TAKING A PHYSICAL INVENTORY)

Involves counting, weighing, or measuring each kind of

inventory on hand.
Companies often “take inventory”
 when the business is closed or
business is slow.
 at the end of the accounting period.
ETHICS NOTE
Dalam Kecurangan yang cukup
popular, perusahaan Minyak
Salad mengisi tangki
minyaknya sebagian besar diisi
dengan air, sehingga Auditor
mengira tangkinya penuh
dengan minyak. Perusahaan
juga mengatakan memiliki
tangki lebih banyak dari yang
dimiliki. Perusahaan mengecat
ulang nomor-nomor tangki
untuk membingungkan auditor

6-8 LO 1
 WAWASAN ETIKA (ETHICS INSIGHT)
Memalsukan Persediaan untuk meningkatkan Pendapatan
(Falsifying Inventory to Boost Income)

Manajer di produsen pakaian wanita dihukum karena memalsukan

catatan persediaan untuk meningkatkan pendapatan bersih — dan
akibatnya untuk meningkatkan bonus manajemen. Dalam kasus lain,
eksekutif di pabrik elektronik dituduh menipu pemberi pinjaman
dengan memanipulasi catatan persediaan. Surat dakwaan
mengatakan perusahaan mengklasifikasikan "barang cacat sebagai
barang baru atau refurbished" dan mengklaim bahwa mereka
memiliki pengiriman tertentu "dari pemasok luar negeri" padahal,
pada kenyataannya, perusahaan tersebut tidak memiliki pengiriman
atau pengiriman tersebut.Tidak ada.

6-9 LO 1
 Determining Inventory Quantities

DETERMINING OWNERSHIP OF GOODS

GOODS IN TRANSIT
 Purchased goods not yet received.

 Sold goods not yet delivered.

Barang dalam perjalanan (Goods intransit) harus dimasukkan ke

dalam inventory perusahaan yang memiliki hak atas barang
tersebut. Hak milik resmi ditentukan oleh Syarat Penjualan.

6-10 LO 1
 DETERMINING OWNERSHIP OF GOODS

Illustration 6-2
Terms of sale

Kepemilikan barang beralih ke

Franco Gdg pembeli ketika pengangkut
Penjual umum menerima barang dari
penjual.

Franco Gdg Kepemilikan barang tetap

Pembeli pada penjual sampai barang
tersebut sampai ke pembeli.

6-11 LO 1
 Determining Ownership of Goods

Question
Goods in transit should be included in the inventory of the
buyer when the:
a. public carrier accepts the goods from the seller.
b. goods reach the buyer.
c. terms of sale are FOB destination.
d. terms of sale are FOB shipping point.

6-12 LO 1
 Determining Ownership of Goods
Barang Konsinyasi (CONSIGNED GOODS)

Untuk menahan barang dari pihak lain dan mencoba

menjual barang untuk mereka dengan biaya tertentu,
tetapi tanpa mengambil kepemilikan barang tersebut.
Banyak pedagang mobil, perahu, dan barang antik
menjual barang secara konsinyasi, mengapa?

6-13 LO 1
 Pabrik Roti Toko Roti

Barang titipan disebut barang Komisi. Tokonya(orang yang menerima titipan 

Komisioner
Barang yang dititipkan disebut barang Konsinyasi

6-14
 ANATOMY OF A FRAUD
Ted Nickerson, CEO pabrikan jam Dally Industries, ditakuti oleh semua
karyawannya. Ted juga punya selera yang mahal. Untuk menunjang
kebiasaannya ini, Ted mengambil pinjaman besar yang dijaminkan dengan
saham biasa di Dally Industries. Jika harga saham Dally turun, dia diharuskan
memberi bank lebih banyak saham biasa. Untuk mencapai angka target laba
bersih dan dengan demikian mempertahankan harga saham, Ted memaksa
karyawan di perusahaan untuk mengubah angka persediaan. Jumlah
persediaan dimanipulasi dengan mengubah jumlah pada tag kontrol persediaan
setelah penghitungan persediaan fisik akhir tahun. Misalnya, jika tag
mengatakan ada 20 unit item tertentu, tag diubah menjadi 220. Demikian
pula, biaya unit yang digunakan untuk menentukan nilai persediaan akhir
ditingkatkan dari, misalnya, $ 125 per unit menjadi $ 1.250 . Kedua
perubahan kecurangan ini berdampak pada peningkatan jumlah persediaan
akhir yang dilaporkan. Ini mengurangi harga pokok penjualan dan
meningkatkan laba bersih.
Total take: $245,000
The Missing Control
Independent internal verification. The inventory records should have been
spot-checked periodically, verifying that the number of units agreed with the
amount on hand and that the unit costs agreed with vendor price sheets.
6-15 LO 1
 > DO IT!
Perusahaan Deng Yaping menyelesaikan penghitungan inventorynya. Ini
mencapai nilai inventori total ¥ 200.000. Anda telah diberi informasi yang
tercantum di bawah ini. Diskusikan bagaimana informasi ini mempengaruhi
biaya persediaan yang dilaporkan.
1.Deng Yaping termasuk dalam persediaan barang yang disimpan sebagai
konsinyasi untuk Falls Co., seharga ¥ 15.000.
2.Perusahaan tidak memasukkan barang yang dibeli seharga ¥ 10.000 yang
sedang dalam perjalanan (syarat: FOB shipping point).
3.Perusahaan tidak memasukkan dalam hitungan persediaan yang telah
terjual dengan harga ¥ 12.000 yang sedang dalam perjalanan
(syarat: FOB shipping point).
Solution
1. Goods of ¥15,000 held on consignment should be deducted from the inventory
count.
2. The goods of ¥10,000 purchased FOB shipping point should be added to the
inventory count.
3. Item 3 was treated correctly. Inventory should be ¥195,000
(¥200,000 - ¥15,000 + ¥10,000).
6-16 LO 1
 Classifying and Determining Inventory
Learning Objective 2
Persediaan dihitung sebesar Harga Perolehan Explain the accounting for
inventories and apply the
(Inventory is accounted for at cost). inventory cost flow methods.

 Cost meliputi semua Pengeluaran yang diperlukan untuk

memperoleh barang dan menempatkannya dalam kondisi siap
untuk dijual. Misalnya, (biaya pengiriman yang terjadi untuk memperoleh
Persediaan ditambahkan ke kos Persediaan tetapi biaya pengiriman ke
Pelanggan merupakan beban Penjualan)

 Perusahaan mengalikan biaya per unit dengan Jumlah untuk

menghitung total biaya persediaan dan Harga Pokok Penjualan.
► Specific identification
Cost Flow
► First-in, first-out (FIFO) Assumptions
► Average-cost
6-17 LO 2
 Inventory Costing

Illustration: Crivitz TV Company Membeli Tiga TV 50-inch

yang identic pada Tanggal yang berbeda sebesar £700, £750,
and £800. Selama Tahun itu Perusahaan Crivitz menjual 2 set
TV dengan Harga masing-masing sebesar £1,200. Fakta ini
diringkas sebagaiberikut.
Penjualan 1.200 x 2 = 2.400
HPP (750 +800 ) = 1.550-
Laba Kotor 850

Illustration 6-3
Data for inventory costing example

6-18 LO 2
 Pada Tanggal 1 Juni 2020 Persediaan Sabun Mandi 5 unit @ Rp1.000=Rp 5.000
2 Juni Beli 20 unit @Rp1.100=Rp22.000
25 Juni Beli 30 unit @Rp1.200=Rp36.000 +
Barang Tersedia untuk dijual 55 BTUD Rp63.000
Margin keuntungan 10%
Persediaan Akhir 4 unit
a. Identifikasi khusus
1. 1 unit @ Rp1.210 hg pokoknya( Rp1.210 :1,10) x 1,00= Rp1.100 x 1 =Rp1.100
2. 3 unit @ Rp1.320  (Rp1.320 :110) x100 = Rp1.200 x3 = Rp3.600+
3. Jadi Nilai Persediaan Akhir Rp 4.700

4. Jadi HPP = Rp58.300

Persediaan Akhir
Persediaan Akhir =4 x Rp1.200 =Rp4.800
LIFO =Persediaan Akhir =4 x Rp1000 =Rp4.000
Rata Sederhana 4 x 100+(1.000+1.100+1200):3 =Rp4.400
6-19 Rata2 Tertimbang 4 x(63.000:55) =Rp4.582
  Beli 2000 berapa harga jual jika marginnya 20%
2000 x (1+0,2) = 2.400

(2.400 :1.2)x1
BTUD Rp2.500.000
Perd akhir Rp 50.000-
HPP……………Rp2.450.000

6-20
 Specific Identification

Jika Crivitz menjual TV yang dibeli Tanggal 3 February dan 22

May, maka beban pokok Penjualan adalah £1,500 (£700 +
£800), dan nilai Persediaan akhir sebesar £750.

Illustration 6-4
Specific identification method

6-21 LO 2
 Specific Identification
Metode penetapan biaya arus fisik aktual di mana
barang-barang yang masih ada dalam persediaan
dihitung biayanya secara khusus untuk sampai pada
biaya total persediaan akhir.
 Practice is relatively rare.

 Kebanyakan Perusahaan membuat

Asumsi (Asumsi arus biaya) tentang
unit mana yang dijual.

6-22 LO 2
 Cost Flow Assumptions

Ada dua metode arus biaya yang diasumsikan:

1. Masuk pertama, keluar pertama (FIFO)

2. Biaya rata-rata

Arus biaya tidak perlu konsisten dengan

pergerakan fisik barang.

6-23 LO 2
 Cost Flow Assumptions
Data for Lin Electronics’ Astro condensers. Illustration 6-5

(Beginning Inventory + Purchases) - Ending Inventory = Cost of Goods Sold

FIFO LIFO Rata-rata Tertimbang
Perd Akhir 5 x 120 = 600 10 x 100=1.000 45 x(12.000:100)=5.400
40 x 130 =5.200 20 x 110=2.200
5.800 15 x 120=1.800+ Rata2 Sederhana
5.000 (100+110+120+130):4=115
6-24 45 unit x $115 =$5.175 LO 2
 Cost Flow Assumptions

FIRST-IN, FIRST-OUT (FIFO)

 Harga pokok pembelian barang paling awal adalah yang
pertama kali diakui dalam menentukan harga pokok
penjualan.

 Seringkali paralel dengan arus fisik barang dagangan.

 Perusahaan memperoleh biaya persediaan akhir dengan

mengambil biaya unit dari pembelian terakhir dan
bekerja mundur sampai semua unit persediaan telah
dihitung biayanya.

6-25 LO 2
 FIRST-IN, FIRST-OUT (FIFO)

Illustration 6-6
Allocation of costs—FIFO method
6-26 LO 2
 FIRST-IN, FIRST-OUT (FIFO)

• HELPFUL HINT
Another way of thinking about
the calculation of FIFO ending
inventory is the LISH
assumption—last in still here.
Illustration 6-6
Allocation of costs—FIFO method

6-27 LO 2
 Cost Flow Assumptions

AVERAGE-COST
 Allocates cost of goods available for sale on the basis
of weighted-average unit cost incurred.

 Applies weighted-average unit cost to the units on

hand to determine cost of the ending inventory.

Illustration 6-8
Formula for weighted-average unit cost

6-28 LO 2
 AVERAGE-COST

Illustration 6-9
Allocation of costs—average-cost method

6-29 LO 2
 AVERAGE-COST

Illustration 6-11

Illustration 6-9
Allocation of costs—average-cost method

6-30 LO 2
 > DO IT!
Catatan Akuntansi dari Shumway Ag Implement menunjukkan data Sbb.:
Perseiaan Awal (Beginning inventory) 4,000 units @ £ 3
Pembalian (Purchases) 6,000 units @ £ 4
Penjualan (Sales) 7,000 units @ £12
Tentukan Beban Pokok Penjualan selama periode tersebut sistem
Persediaan Periodik Menggunakan metode (a) FIFO (b) biaya rata-rata
( average-cost method).
Solution
Cost of goods available for sale = (4,000 × £3) + (6,000 × £4) = £36,000
Ending inventory = 10,000 − 7,000 = 3,000 units
(a) FIFO: £36,000 − (3,000 × £4) = £24,000
(b) Average cost per unit: [(4,000 × £3) + (6,000 × £4)] ÷ 10,000 = £3.60
Average-cost: £36,000 − (3,000 × £3.60) = £25,200
6-31 LO 2
 Financial Statement and Tax Effects of
Cost Flow Methods
Learning Objective 3
Explain the financial effects
Either of the two cost flow assumptions of the inventory cost flow
assumptions.
is acceptable for use. For example,
 adidas (DEU) and Lenovo (CHN) use the average-cost
method, whereas
 Syngenta Group (CHE) and Nokia (FIN) use FIFO.

A recent survey of IFRS companies, approximately

► 60% use the average-cost method,
► 40% use FIFO, and
► 23% use both for different parts of their inventory.
6-32 LO 3
 INCOME STATEMENT EFFECTS

Illustration 6-10
6-33 Comparative effects of cost flow methods LO 3
 STATEMENT OF FINANCIAL POSITION EFFECTS

 A major advantage of the FIFO method is that in a period

of inflation, the costs allocated to ending inventory will
approximate their current cost.

 A major shortcoming of the average-cost method is that

in a period of inflation, the costs allocated to ending
inventory may be understated in terms of current cost.

6-34 LO 3
 TAX EFFECTS

 Both inventory and net income are higher when companies

use FIFO in a period of inflation.

 Average-cost results in the lower income taxes (because

of lower net income) during times of rising prices.

6-35 LO 3
 Using Cost Flow Methods Consistently

 Method should be used consistently, enhances

comparability.
 Although consistency is preferred, a company may change
its inventory costing method.

6-36 LO 3
 Cost Flow Assumptions

Question
In periods of rising prices, average-cost will produce:
a. higher net income than FIFO.
b. the same net income as FIFO.
c. lower net income than FIFO.
d. net income equal to the specific identification method.

6-37 LO 3
 Cost Flow Assumptions

Question
Factors that affect the selection of an inventory costing
method do not include:
a. tax effects.
b. statement of financial position effects.
c. income statement effects.
d. perpetual vs. periodic inventory system.

6-38 LO 3
 GLOBAL INSIGHT
Is LIFO Fair?
ExxonMobil Corporation (USA), like many U.S. companies, uses a cost flow
assumption called last-in, first-out (LIFO) to value its inventory for financial
reporting and tax purposes. In one recent year, this resulted in a cost of goods
sold figure that was $5.6 billion higher than under FIFO. By increasing cost of
goods sold, ExxonMobil reduces net income, which reduces taxes. Critics say
that LIFO provides an unfair “tax dodge.” As the U.S. Congress looks for more
sources of tax revenue, some lawmakers favor the elimination of LIFO.
Supporters of LIFO argue that the method is conceptually sound because it
matches current costs with current revenues. In addition, they point out that
this matching provides protection against inflation. International accounting
standards do not allow the use of LIFO. As a result, the net income of foreign
oil companies, such as BP (GBR) and Royal Dutch Shell (GBR and NLD),
are not directly comparable to U.S. companies, which makes analysis difficult.
Source: David Reilly, “Big Oil’s Accounting Methods Fuel Criticism,” Wall Street Journal
(August 8, 2006), p. C1.

6-39 LO 3
 Lower-of-Cost-or-Net Realizable Value
Learning Objective 4
Explain the lower-of-cost-or-
When the value of inventory is lower net realizable value
basis of accounting for
than its cost inventories.

 companies must “write down” the inventory to its net

realizable value.

Net realizable value: Amount that a company expects to

realize (receive from the sale of inventory).

6-40 LO 4
 Lower-of-Cost-or-Net Realizable Value

Illustration: Assume that Gao TV has the following lines of

merchandise with costs and market values as indicated.

Illustration 6-11
Computation of lower-of-cost-or-net realizable value

6-41 LO 4
 Inventory Errors
Learning Objective 5
Indicate the effects of
Common Causes: inventory errors on the
financial statements.

 Failure to count or price inventory correctly.

 Not properly recognizing the transfer of legal title to
goods in transit.
 Errors affect both the income statement and statement of
financial position.

6-42 LO 5
 PENGARUH TERHADAP LAPORAN LABA RUGI

Kesalahan Persediaan Harga Pokok Laba Neto

Penjualan
Persediaan Awal Kurang Saji Kurang saji Lebih saji
Persediaan Awal Lebih Saji Lebih saji Kurang saji
Persediaan Akhir Kurang Saji Lebih saji Kurang saji
Persediaan Akhir Lebih Saji Kurang saji Lebih saji

6-43 LO 3
 PENGARUH TERHADAP LAPORAN POSISI KEUANGAN
(STATEMENT OF FINANCIAL POSITION EFFECTS)

Perusahaan dapat Menentukan Pengaruh kesalahan

Persediaan akhir terhadap laporan posisi keuangan
menggunakan persamaan dasar Akuntansi:

Aset = Kewajiban + Ekuitas kesalahan pada Persediaan

akhir memberikan Pengaruh sebagaimana ditunjukkan di
bawah ini. Aset
Kesalahan Kewajiban Ekuitas
Persediaan Akhir
Lebih Saji Lebih Saji Tidak berpengaruh Lebih saji
Kurang Saji Kurang Saji Tidak berpengaruh Kurang saji

6-44 LO 3
 Income Statement Effects

Inventory errors affect the computation of cost of goods

sold and net income in two periods. Illustration 6-12
Formula for cost of goods sold

Illustration 6-13
Effects of inventory errors on current year’s income statement
6-45 LO 5
 Income Statement Effects

Kesalahan Persediaan (Inventory errors) mempengaruhi

Perhitungan HPPj dan Laba Bersih dalam dua periode.
 Kesalahan dalam Persediaan Akhir periode berjalan
akan akan mempunyai Pengaruh terbalik pada laba
bersih periode Akuntansi periode berikutnya.
 Selama dua Tahun, total laba bersih benar karena
kesalahan saling mengimbangi.
 Persediaan akhir bergantung sepenuhnya pada
keakuratan Perhitungan dan harga dari Persediaan
Secara tepat.

6-46 LO 5
 Income Statement Effects Illustration 6-14
Effects of inventory errors on
two years’ income statements

2016 2017
Incorrect Correct Incorrect Correct
Sales € 80,000 € 80,000 € 90,000 € 90,000
Beginning inventory 20,000 20,000 12,000 15,000
Cost of goods purchased 40,000 40,000 68,000 68,000
Cost of goods available 60,000 60,000 80,000 83,000
Ending inventory 12,000 15,000 23,000 23,000
Cost of good sold 48,000 45,000 57,000 60,000
Gross profit 32,000 35,000 33,000 30,000
Operating expenses 10,000 10,000 20,000 20,000
Net income € 22,000 € 25,000 € 13,000 € 10,000

Combined income for (€3,000) €3,000

2-year period is correct. Net income Net income
understated overstated

6-47 LO 5
 Income Statement Effects

Question
Atlantis Company’s ending inventory is understated
NT$122,000. The effects of this error on the current year’s
cost of goods sold and net income, respectively, are:
a. understated, overstated.
b. overstated, understated.
c. overstated, overstated.
d. understated, understated.

6-48 LO 5
 Statement of Financial Position Effects

Effect of inventory errors on the statement of financial position

is determined by using the basic accounting equation: Assets
= Liabilities + Equity.
Errors in the ending inventory have the following effects.

Illustration 6-15
Effects of ending inventory errors on statement of financial position

6-49 LO 5
 > DO IT!

LCNRV Basis; Inventory Errors

(a) Tracy Company menjual tiga jenis Kompor Pemanas Rumah
yang berbeda (kayu, gas, and pellet). Biaya perolehan dan
nilai realisasi neto dari Persediaan Kompornya adalah sbb:.

Determine the value of the company’s inventory under the lower-

of-cost-or-net realizable value approach.
Total inventory value is the sum of these amounts, NT$430,000.
6-50 LO 5
 > DO IT!

LCNRV Basis; Inventory Errors

(b) Visual Company melebihsajikan Persediaan akhir 2016
sebesar NT$22,000. Tentukan dampak yang diakibatkan dari
kesalahan ini terhadap Persediaan akhir, cost of goods sold,
dan equity in 2016 and 2017.
2016 2017
Ending inventory NT$22,000 overstated No effect
Cost of goods sold NT$22,000 understated NT$22,000
overstated
Equity
Equity NT$22,000 overstated No effect

6-51 LO 5
 Statement Presentation and Analysis
Learning Objective 6
Discuss the presentation
Presentation and analysis of inventory.

Statement of Financial Position - Inventory classified as

current asset.

Income Statement - Cost of goods sold is subtracted from

sales.

There also should be disclosure of the

1) major inventory classifications,

2) basis of accounting (cost or LCNRV), and

3) costing method (specific identification, FIFO, or average-

cost).
6-52 LO 6
 Statement Presentation and Analysis
Analysis
Manajemen Persediaan (Inventory management)
adalah Pedang bermata dua (double-edged sword)

1. Tingkat Persediaan Tinggi - dapat menimbulkan

biaya penyimpanan yang tinggi (misalnya, investasi,
penyimpanan(Storage), asuransi,
keusangan(obsolescence), dan kerusakan
(Demage)).
2. Tingkat Persediaan Rendah - dapat menyebabkan
kehabisan stok dan penjualan yang hilang.
6-53 LO 6
 Analysis

Inventory turnover measures the number of times on

average the inventory is sold during the period.

Cost of Goods Sold

Inventory
ngukur Turnover
=
Average Inventory
sediaan
sebut.
Days in inventory measures the average number of days
inventory is held.
Days in Year (365)
Days in
=
Inventory
Inventory Turnover

6-54 LO 6
 Analysis

Illustration: Esprit Holdings (HKG) reported in a recent annual report

a beginning inventory of HK$3,209 million, an ending inventory of
HK$3,254 million, and cost of goods sold for the year ended of
HK$12,071 million. The inventory turnover formula and computation for
Esprit Holdings are shown below.

Illustration 6-17
Inventory turnover formula Days in Inventory: Inventory turnover of 3.7
and computation for Esprit
Holdings (in millions) times divided into 365 is approximately 99 days.
This is the approximate time that it takes a
company to sell the inventory.
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 ACCOUNTING ACROSS THE ORGANIZATION
Improving Inventory Control with RFID
Many large retailers have improved their inventory control with the
introduction of radio frequency identification (RFID). Much like bar
codes, which tell a retailer the number of boxes of a specific
product it has, RFID goes an additional step, helping to distinguish
one box of a specific product from another. RFID uses technology
similar to that used by keyless remotes that unlock car doors.
Companies currently use RFID to track shipments from supplier to
distribution center to store. Other potential uses include monitoring
product expiration dates and acting quickly on product recalls.
Many companies also anticipate faster returns and warranty
processing using RFID. This technology will further assist
managers in their efforts to ensure that their store has just the right
type of inventory, in just the right amount, in just the right place.

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 > DO IT!
Early in 2017, Seoul Company switched to a just-in-time inventory
system. Its sales, cost of goods sold, and inventory amounts for 2016
and 2017 are shown below.
2016 2017
Sales revenue ₩2,000,000 ₩1,800,000
Cost of goods sold 1,000,000 910,000
Beginning inventory 290,000 210,000
Ending inventory 210,000 50,000
Determine the inventory turnover and days in inventory for 2016 and
2017. 2016 2017

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 APPENDIX 6A Perpetual Inventory System
Learning Objective 7
Apply the inventory cost
Illustration 6A-1 flow methods to perpetual
Inventoriable units and costs inventory records.

Assuming the Perpetual Inventory System, compute Cost of Goods

Sold and Ending Inventory under FIFO and average-cost.
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 First-In-First-Out (FIFO)

Illustration 6A-2
Perpetual system—FIFO Cost of Goods
Ending Inventory
Sold

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 Average-Cost

Illustration 6A-3
Perpetual system— Cost of Goods Ending Inventory
average-cost method
Sold

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 APPENDIX 6B Estimating Inventories
Learning Objective 8
Describe the two methods
Gross Profit Method of estimating inventories.

Estimates the cost of ending inventory by applying a gross

profit rate to net sales.

Illustration 6B-1
Gross profit method formulas

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 Gross Profit Method
Illustration: Kishwaukee Company’s records for January show net sales
of $200,000, beginning inventory $40,000, and cost of goods purchased
$120,000. The company expects to earn a 30% gross profit rate.
Compute the estimated cost of the ending inventory at January 31 under
the gross profit method. Illustration 6B-2
Example of gross profit method

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 Retail Inventory Method

Company applies the cost-to-retail percentage to ending

inventory at retail prices to determine inventory at cost.

Illustration 6B-3
Retail inventory method formulas
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 Retail Inventory Method

Illustration: Illustration 6B-4

Application of retail inventory method

Note that it is not necessary to take a physical inventory to estimate

the cost of goods on hand at any given time.

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 APPENDIX 6C LIFO Inventory Method
Learning Objective 9
Apply the LIFO inventory
Last-In-First-Out (LIFO) costing method.

 Under IFRS, LIFO is not permitted for financial

reporting purposes.

 Assumes latest goods purchased are first to be sold.

 Seldom coincides with actual physical flow of

merchandise, except for goods stored in piles, such
as coal or hay.

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 Last-In-First-Out (LIFO)
Illustration 6C-1
Allocation of costs—LIFO method

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 Last-In-First-Out (LIFO)

Illustration 6C-1
Allocation of costs—LIFO method

Illustration 6C-2
Proof of COGS
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 A Look at U.S. GAAP Learning Objective 10
Compare the accounting for
inventories under IFRS and
U.S. GAAP.
Key Points
 The requirements for accounting for and reporting inventories are more
principles-based under IFRS. That is, GAAP provides more detailed
guidelines in inventory accounting.
 IFRS requires companies to use the same cost flow assumption for all goods
of a similar nature. GAAP has no specific requirement in this area.

Similarities
 The definitions for inventory are essentially similar under GAAP and IFRS.
Both define inventory as assets held-for-sale in the ordinary course of
business, in the process of production for sale (work in process), or to be
consumed in the production of goods or services (e.g., raw materials).
 Who owns the goods—goods in transit or consigned goods—as well as the
costs to include in inventory, are accounted for the same under GAAP and
IFRS.

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 A Look at U.S. GAAP
Key Points
Differences
 Both GAAP and IFRS permit specific identification where appropriate. IFRS
actually requires that the specific identification method be used where the
inventory items are not interchangeable (i.e., can be specifically identified).
If the inventory items are not specifically identifiable, a cost flow
assumption is used. GAAP does not specify situations in which specific
identification must be used.
 A major difference between IFRS and GAAP relates to the LIFO cost flow
assumption. GAAP permits the use of LIFO for inventory valuation. IFRS
prohibits its use. FIFO and average-cost are the only two acceptable cost
flow assumptions permitted under IFRS.

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 A Look at U.S. GAAP
Key Points
Differences
 When testing to see if the value of inventory has fallen below its cost, IFRS
defines market as net realizable value. Net realizable value is the estimated
selling price in the ordinary course of business, less the estimated costs to
complete and sell. In other words, net realizable value is the best estimate
of the net amounts that inventories are expected to realize. GAAP, on the
other hand, defines market as essentially replacement cost. The GAAP
method of inventory valuation is often referred to as the lower-of-cost-or-
market (LCM).

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 A Look at U.S. GAAP
Key Points
Differences
 Under GAAP, if inventory is written down under the lower-of-cost-or-market
valuation, the new basis is now considered its cost. As a result, the
inventory may not be written back up to its original cost in a subsequent
period. Under IFRS, the write-down may be reversed in a subsequent
period up to the amount of the previous write-down. Both the write-down
and any subsequent reversal should be reported on the income statement.
 IFRS generally requires pre-harvest inventories of agricultural products
(e.g., growing crops and farm animals) to be reported at fair value less cost
of disposal. GAAP generally requires these items to be recorded at cost.

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 A Look at U.S. GAAP
Looking to the Future
One convergence issue that will be difficult to resolve relates to the use of the
LIFO cost flow assumption. As indicated, IFRS specifically prohibits its use.
Conversely, the LIFO cost flow assumption is widely used in the United States
because of its favorable tax advantages. In addition, many argue that LIFO
from a financial reporting point of view provides a better matching of current
costs against revenue and, therefore, enables companies to compute a more
realistic income.

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 A Look at U.S. GAAP
A Look at IFRS
GAAP Self-Test Questions
Which of the following should not be included in the inventory of a
company using GAAP?
a) Goods held on consignment from another company.
b) Goods shipped on consignment to another company.
c) Goods in transit from another company shipped FOB
shipping point.
d) None of the above.

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 A Look at U.S. GAAP
A Look at IFRS
GAAP Self-Test Questions
Which method of inventory costing is prohibited under IFRS?
a) Specific identification.
b) FIFO.
c) LIFO.
d) Average-cost.

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 A Look at U.S. GAAP
A Look at IFRS
GAAP Self-Test Questions
Specific identification:
a) must be used under IFRS if the inventory items are not
interchangeable.
b) cannot be used under IFRS.
c) cannot be used under GAAP.
d) must be used under IFRS if it would result in the most
conservative net income.

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 Copyright

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