Thursday, June 18, 2009

classifications of inventory

for manufacturing company there are three different classifications of inventory.these are:
1- Raw materials- the individual parts and pieces that will be assembled to make the finished goods.
2- Work-in-progress- units of inventory for which production has started, but has not yet been completed.
3- finished goods- units that have been completed , but not yet sold.

Internal links :
1- this link about inventory and financial statement
2- this link about valuing the inventory when it purchased

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