1. Cost of goods sold 2. Gross Margin (gross profit) 3. Merchandisers 4. Retailers 5. Wholesalers 6. Merchandise Inventory 7. Manufacturers 8. Raw materials inventory 9. Work-in-progress inventory 10. Finished goods 11. Cost of goods available for sale 12. Perpetual inventory system 13. Periodic inventory system 14. Purchases 15. Purchase discounts Chapter 6 Definitions A Merchandisers that sell to other retailers B. Goods owned by one party being held and offered for sale by another C. The cost of the final product that is available for sale. = D. Ownership of inventory passes from seller to buyer at the shipping point A Raw materials used in production. F. Cost of ending inventory and the cost of goods sold are based on the identification of the actual units sold and inventory. G. Cost of merchandise acquired for resale. H. When companies sell their inventory E 1. Ownership of inventory passes when the goods are delivered to the buyer. J. Sum of beginning inventory and purchases. K. Companies that buy and transform raw materials into finished product. L. Sales Revenue less cost of goods sold M. The costs of the earliest inventory purchases are assigned to the most recent purchases by customers. N. Takes a physical count of inventory at the end of the period. 0. Companies that purchase inventory in a finished condition and hold it for resale without further processing. P. Balances for inventory and cost of goods sold are continually updated. Q. Basic ingredients used to make a product. R. The most recent purchases of inventory are assigned to cost of goods sold and the earliest purchases of inventory are assigned to inventory S. When the seller id responsible for transportation costs. T. Merchandisers that sell directly to customers U. Allocates the cost of goods available between ending inventory and cost of goods sold based on weighted average cost per unit. V. Discounts to encourage prompt payment. W. Period when you can take a purchase discount X. If the value of inventory is less than its cost, than the value of inventory is lowered to the market value. Y. The cost of merchandise returned to the supplier Z. Inventory held by merchandisers AA. Customer keeps the product and receives a reduction in price. AB. When the buyer pays the transportation costs. 16. Discount period 17. Purchase return 18. Purchases allowance 19. F.O.B. shipping point 20. Freight-in 21. F.O.B. destination 22. Freight-out 23. Consignment 24. Specific identification method 25. First-in, first-out (FIFO) 26. First-in, last-out (LIFO) 27. Average cost method 28. Lower of cost or market