BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
3 views

Distinguish among the types of inventory accounts used for merchandising and manufacturing companies.

To determine

Identify the differences among the inventory accounts that are maintained by the merchandising and the manufacturing companies.

Explanation

Merchandising businesses:

Merchandising companies which buy goods from suppliers, or manufacturers, and sell to retailers are referred to as merchandising businesses. These companies act as middlemen between manufacturing and retailing companies

Manufacturing businesses:

This is a business that buys raw materials, processes those to make finished goods, and sells those goods to customers.

The differences among the inventory accounts maintained by the merchandising and the manufacturing companies are:

  • The Merchandising companies have only one type of Inventory account.
  • The Manufacturing companies have three types of inventory accounts, namely the Raw Materials Inventory, the Work-In-Process Inventory and Finished Goods Inventory.

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Describe marketing uses of branding

MKTG 12:STUDENT ED.-TEXT

What is trade associations role in encouraging ethics?

Foundations of Business (MindTap Course List)

What does double taxation of corporate income mean? Could income ever be subject to triple taxation? Explain yo...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Each time an account is written off under the direct write-off method, Bad Debt Expense is debited.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Find all the answers to your study problems with bartleby.
Textbook solutions plus Q&A. Get As ASAP arrow_forward