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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Tulvio Durand who wrote (48092)	2/6/2001 7:22:56 AM
From: Monty Lenard	Read Replies (1) \| Respond to of 77400

Unfinished goods and parts can be "adjusted" also. Why there, it makes it more difficult to see plus people tend to just discount/accept that number because they don't understand it. Lets say I have the following: Sales $100 Beg Fin Goods Inventory $10 Beg Work in Process $5 Purchases $5 Direct Labor $5 Ending Fin Goods Inventory $10 Ending WIP $5 Cost of Sales $10 Gross Profit $90 Now Beg Fin Goods Inventory $10 Beg Work in Process $5 Purchases $5 Direct Labor $5 Ending Fin Goods Inventory $10 Ending WIP $10 Cost of Sales $5 Gross Profit $95 I can hide a lot of labor and material in WIP by not transferring it to Finished Goods but they both are an asset that directly changes CGS. FWIW Monty PS before someone jumps me there is a lot more that Dir Labor and Materials that go into WIP. Like mfg overhead etc etc. A lot of nice stuff that does not get written off in current expenses rather ends up as INVENTORY. Also this is not the exact format it will be displayed on detailed financials.