Ch 8: Inventories: Measurement

Ch 8: Inventories: Measurement

1. Types of Inventory

   • Merchandising Inventory
     • purchase inventory in finished form
     • cost of merchandise inventory includes:
       • purchase price
       • costs needed to get the goods in condition & location for sale
   • Manufacturing Inventories
     • Raw Materials
       • components that have not yet been used in production
     • Finished Goods (FG)
       • completed, but not yet sold
     • Work in Process (WIP) Inventory
       • started, but not yet completed
       • materials
       • labor directly traced to goods
       • allocated other manufacturing costs