Complete the following statements with one of the terms listed below. A term may be used once, more than once, or not at all. Finished goods inventory              • Unfinished goods Manufacturing organizations        • Service organizations Merchandising companies (a) All -------------- typically have a single category of inventory. (b) -------------- do not have tangible products purchased for resale. (c) -------------- resell ready-made products. (d) The inventory of a manufacturer includes raw material, --------- and ----------. (e) -------------- use their plant, machinery and labor to convert raw material into finished goods. Distinguish among service, merchandising and manufacturing companies. What are the Inventoriable costs of a merchandising business? Explain the term “period costs”.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. Complete the following statements with one of the terms listed below. A term may be used once, more than once, or not at all.
  • Finished goods inventory              • Unfinished goods
  • Manufacturing organizations        • Service organizations
  • Merchandising companies

(a) All -------------- typically have a single category of inventory.

(b) -------------- do not have tangible products purchased for resale.

(c) -------------- resell ready-made products.

(d) The inventory of a manufacturer includes raw material, --------- and ----------.

(e) -------------- use their plant, machinery and labor to convert raw material into finished goods.

Distinguish among service, merchandising and manufacturing companies.

What are the Inventoriable costs of a merchandising business?

Explain the term “period costs”.

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