Inventories: Measurement

Inventories: Measurement

1. Types of Inventory

   • Merchandising Inventory
     • Purchase inventory in finished form
   • Manufacturing Inventories
     • Raw Materials
     • Work in Process (WIP) Inventory

2. Types of Inventory Systems

   • Perpetual Inventory System
     • Inventory account is continually adjusted for each change in inventory whether caused by purchase, sale, OR return
   • Periodic Inventory System
     • Doesn't maintain a continual record of inventory quantity OR cost