Chapter 2, Problem 2.1SE

Short Exercises

S2-1 Identify types of companies and their inventories (Learning Objective 1)

Complete the following statements with one of the terms listed here. You may use a term more than once, and some terms may not be used at all

Finished goods inventory	Inventory (merchandise)	Service companies
Manufacturing companies	Merchandising companies	Work in process inventory
Raw materials inventory	Wholesalers

1. a. _____report three types of inventory on the balance sheet.
2. b. _____for a company such as Best Buy (consumer electronics) includes all of the costs necessary to purchase products and get them onto the store shelves.
3. c. Most for-profit organizations can be described as being in one (or more) of three categories: _____, _____, and _____.
4. d. _____ is composed of goods partially through the manufacturing process (not finished yet).
5. e. Forever 21, Target, and Kohl’s are all examples of _____.
6. f. _____typically do not have an inventory account.
7. g. Johnson & Johnson, a personal care products manufacturer, converts _____into finished products.
8. h. A law office, an advertising agency, and a hospital are all examples of _____.
9. i. _____buy products in bulk from producers, mark them up, and resell to retailers.