Which types of companies have work in process inventory.

Question

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Answer 1

Question

Chapter 2, Problem 1QC

To determine

To identify: Which types of companies have work in process inventory.

Expert Solution & Answer

Answer to Problem 1QC

Option c. manufacturing companies would have to work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service companies are an incorrect option as they deal in intangibles, so generally do not have inventories.
b. Merchandising companies is an incorrect option as they resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.
c. Manufacturing companies are a correct option as they use labor, plant, and equipment to convert raw materials into finished products. Due to which they carry three types of inventories, raw materials inventory, work in process inventory, & finished goods inventory.
d. All of the above is the incorrect option as given in the above explanation only c is the correct option.

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Answer 2

Question

Chapter 2, Problem 1QC

To determine

To identify: Which types of companies have work in process inventory.

Expert Solution & Answer

Answer to Problem 1QC

Option c. manufacturing companies would have to work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service companies are an incorrect option as they deal in intangibles, so generally do not have inventories.
b. Merchandising companies is an incorrect option as they resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.
c. Manufacturing companies are a correct option as they use labor, plant, and equipment to convert raw materials into finished products. Due to which they carry three types of inventories, raw materials inventory, work in process inventory, & finished goods inventory.
d. All of the above is the incorrect option as given in the above explanation only c is the correct option.

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Answer 3

Question

Chapter 2, Problem 1QC

To determine

To identify: Which types of companies have work in process inventory.

Expert Solution & Answer

Answer to Problem 1QC

Option c. manufacturing companies would have to work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service companies are an incorrect option as they deal in intangibles, so generally do not have inventories.
b. Merchandising companies is an incorrect option as they resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.
c. Manufacturing companies are a correct option as they use labor, plant, and equipment to convert raw materials into finished products. Due to which they carry three types of inventories, raw materials inventory, work in process inventory, & finished goods inventory.
d. All of the above is the incorrect option as given in the above explanation only c is the correct option.

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Answer 4

Question

Chapter 2, Problem 1QC

To determine

To identify: Which types of companies have work in process inventory.

Expert Solution & Answer

Answer to Problem 1QC

Option c. manufacturing companies would have to work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service companies are an incorrect option as they deal in intangibles, so generally do not have inventories.
b. Merchandising companies is an incorrect option as they resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.
c. Manufacturing companies are a correct option as they use labor, plant, and equipment to convert raw materials into finished products. Due to which they carry three types of inventories, raw materials inventory, work in process inventory, & finished goods inventory.
d. All of the above is the incorrect option as given in the above explanation only c is the correct option.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 2, Problem 1QC

To determine

To identify: Which types of companies have work in process inventory.

Expert Solution & Answer

Answer to Problem 1QC

Option c. manufacturing companies would have to work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service companies are an incorrect option as they deal in intangibles, so generally do not have inventories.
b. Merchandising companies is an incorrect option as they resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.
c. Manufacturing companies are a correct option as they use labor, plant, and equipment to convert raw materials into finished products. Due to which they carry three types of inventories, raw materials inventory, work in process inventory, & finished goods inventory.
d. All of the above is the incorrect option as given in the above explanation only c is the correct option.

Answer 6

Chapter 2, Problem 1QC

To determine

To identify: Which types of companies have work in process inventory.

Expert Solution & Answer

Answer to Problem 1QC

Option c. manufacturing companies would have to work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service companies are an incorrect option as they deal in intangibles, so generally do not have inventories.
b. Merchandising companies is an incorrect option as they resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.
c. Manufacturing companies are a correct option as they use labor, plant, and equipment to convert raw materials into finished products. Due to which they carry three types of inventories, raw materials inventory, work in process inventory, & finished goods inventory.
d. All of the above is the incorrect option as given in the above explanation only c is the correct option.

Answer 7

Chapter 2, Problem 1QC

To determine

To identify: Which types of companies have work in process inventory.

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Option c. manufacturing companies would have to work in process inventory.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

There are basically three types of companies:

a. Service companies are an incorrect option as they deal in intangibles, so generally do not have inventories.
b. Merchandising companies is an incorrect option as they resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.
c. Manufacturing companies are a correct option as they use labor, plant, and equipment to convert raw materials into finished products. Due to which they carry three types of inventories, raw materials inventory, work in process inventory, & finished goods inventory.
d. All of the above is the incorrect option as given in the above explanation only c is the correct option.