Chapter 18, Problem 18.1DC

To determine

Direct Material Inventory: Materials which are directly related to the finished goods are known as direct materials. Direct material inventory is the left out stock of direct materials.

Work in Process Inventory: Work in process inventory is the stock of direct materials which are undergone few steps of production cycle but not converted into finished goods.

Finished Goods Inventory: The materials which have been converted into finished goods or the goods ready to sell in the open market is known as the finished goods. The left out stock of finished goods is known as finished goods inventory.

1.

To prepare: The schedule for inventory accounts.

To determine

2.

To prepare: A list with the cost of inventory lost.