Describe the three types of inventory of a manufacturing company.

Question

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

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

Students have asked these similar questions

Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $226,000, direct professional labor hours were estimated to be 28,000, and direct professional labor cost was projected to be $425,000. During the year, Armour incurred actual overhead costs of $205,200, actual direct professional labor hours of 23,900, and actual direct labor costs of $333,000. By year-end, the firm's overhead was __.

The net sales for Casual Fashions, Inc. last year amounted to $1,126,800 and the average inventory at retail was $212,604. The published inventory turnover at retail is 6. Calculate the inventory turnover at retail, and if it is less than the published rate, calculate the target average inventory at retail. (Round your answer to the nearest dollar) a. $178,800 b. $187,800 c. $212,500 d. Turnover is greater

I want answer

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.

Want to see more full solutions like this?

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

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.

Want to see more full solutions like this?

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

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.

Want to see more full solutions like this?

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

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

Ch. 8 - Describe the three types of inventory of a...Ch. 8 - What is the main difference between a perpetual...Ch. 8 - The Cloud Company employs a perpetual inventory...Ch. 8 - The Bockner Company shipped merchandise to Laetner...Ch. 8 - What is a consignment arrangement? Explain the...Ch. 8 - Prob. 8.6Q Ch. 8 - The Esquire Company employs a periodic inventory...Ch. 8 - Prob. 8.8Q Ch. 8 - Its common in the electronics industry for unit...Ch. 8 - Explain why proponents of LIFO argue that it...

Describe the three types of inventory of a manufacturing company.

Videos

Explanation of Solution

Want to see more full solutions like this?

Chapter 8 Solutions