Describe the three types of inventory of a manufacturing company.

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Answer 1

Textbook Question

Chapter 8, Problem 8.1Q

Describe the three types of inventory of a manufacturing company.

Expert Solution & Answer

To determine

Inventory: It refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market.

To describe: the three types of inventory of a manufacturing company.

Explanation of Solution

The three types of inventory of a manufacturing company are:

Raw Materials: It refers to the cost of the materials that are purchased from the suppliers to be converted into the goods ready for sale in the market.
Work-in-process inventory: It refers to the goods that are yet to be completed to make it ready for sale. The cost of such inventory includes the cost of the raw materials, the cost of the labor, and other costs associated with the production to make the goods completed.
Finished goods: It refers to the goods that are completed but are yet to be sold in the market. The cost of such goods includes the cost of raw materials and the cost of work-in-process inventory used in the production.

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Students have asked these similar questions

What is the purpose of having three separate inventory categories in a manufacturing company?

Manufacturing firms use which of the following three inventory accounts? A. Materials, Work-in-process, Transferred-out. B. Materials, Work-in-process, Finished goods. C. Materials, Finished goods, Transferred-out. D. Work-in-process, Finished goods, Transferred-out.

What is the difference between manufacturing and nonmanufacturing costs and between product and period costs? Also, please describe the three inventory accounts of a manufacturing firm.

Answer 2

Textbook Question

Chapter 8, Problem 8.1Q

Describe the three types of inventory of a manufacturing company.

Expert Solution & Answer

To determine

Inventory: It refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market.

To describe: the three types of inventory of a manufacturing company.

Explanation of Solution

The three types of inventory of a manufacturing company are:

Raw Materials: It refers to the cost of the materials that are purchased from the suppliers to be converted into the goods ready for sale in the market.
Work-in-process inventory: It refers to the goods that are yet to be completed to make it ready for sale. The cost of such inventory includes the cost of the raw materials, the cost of the labor, and other costs associated with the production to make the goods completed.
Finished goods: It refers to the goods that are completed but are yet to be sold in the market. The cost of such goods includes the cost of raw materials and the cost of work-in-process inventory used in the production.

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Answer 3

Textbook Question

Chapter 8, Problem 8.1Q

Describe the three types of inventory of a manufacturing company.

Expert Solution & Answer

To determine

Inventory: It refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market.

To describe: the three types of inventory of a manufacturing company.

Explanation of Solution

The three types of inventory of a manufacturing company are:

Raw Materials: It refers to the cost of the materials that are purchased from the suppliers to be converted into the goods ready for sale in the market.
Work-in-process inventory: It refers to the goods that are yet to be completed to make it ready for sale. The cost of such inventory includes the cost of the raw materials, the cost of the labor, and other costs associated with the production to make the goods completed.
Finished goods: It refers to the goods that are completed but are yet to be sold in the market. The cost of such goods includes the cost of raw materials and the cost of work-in-process inventory used in the production.

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Answer 4

Textbook Question

Chapter 8, Problem 8.1Q

Describe the three types of inventory of a manufacturing company.

Expert Solution & Answer

To determine

Inventory: It refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market.

To describe: the three types of inventory of a manufacturing company.

Explanation of Solution

The three types of inventory of a manufacturing company are:

Raw Materials: It refers to the cost of the materials that are purchased from the suppliers to be converted into the goods ready for sale in the market.
Work-in-process inventory: It refers to the goods that are yet to be completed to make it ready for sale. The cost of such inventory includes the cost of the raw materials, the cost of the labor, and other costs associated with the production to make the goods completed.
Finished goods: It refers to the goods that are completed but are yet to be sold in the market. The cost of such goods includes the cost of raw materials and the cost of work-in-process inventory used in the production.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Inventory: It refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market.

To describe: the three types of inventory of a manufacturing company.

Explanation of Solution

The three types of inventory of a manufacturing company are:

Raw Materials: It refers to the cost of the materials that are purchased from the suppliers to be converted into the goods ready for sale in the market.
Work-in-process inventory: It refers to the goods that are yet to be completed to make it ready for sale. The cost of such inventory includes the cost of the raw materials, the cost of the labor, and other costs associated with the production to make the goods completed.
Finished goods: It refers to the goods that are completed but are yet to be sold in the market. The cost of such goods includes the cost of raw materials and the cost of work-in-process inventory used in the production.

Answer 8

Expert Solution & Answer

To determine

Inventory: It refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market.

To describe: the three types of inventory of a manufacturing company.

Explanation of Solution

The three types of inventory of a manufacturing company are:

Raw Materials: It refers to the cost of the materials that are purchased from the suppliers to be converted into the goods ready for sale in the market.
Work-in-process inventory: It refers to the goods that are yet to be completed to make it ready for sale. The cost of such inventory includes the cost of the raw materials, the cost of the labor, and other costs associated with the production to make the goods completed.
Finished goods: It refers to the goods that are completed but are yet to be sold in the market. The cost of such goods includes the cost of raw materials and the cost of work-in-process inventory used in the production.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Inventory: It refers to the current assets that a company expects to sell during the normal course of business operations, the goods that are under process to be completed for future sale, or currently used for producing goods to be sold in the market.

To describe: the three types of inventory of a manufacturing company.

Answer 12

Explanation of Solution

The three types of inventory of a manufacturing company are:

Raw Materials: It refers to the cost of the materials that are purchased from the suppliers to be converted into the goods ready for sale in the market.
Work-in-process inventory: It refers to the goods that are yet to be completed to make it ready for sale. The cost of such inventory includes the cost of the raw materials, the cost of the labor, and other costs associated with the production to make the goods completed.
Finished goods: It refers to the goods that are completed but are yet to be sold in the market. The cost of such goods includes the cost of raw materials and the cost of work-in-process inventory used in the production.

Answer 13

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Describe the three types of inventory of a manufacturing company.

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