Inventories of Manufacturers in Financial Accounting

The inventories of manufacturers are comprised of three broad categories. Raw materials are the basic components of the inventory items produced by the firm. Work-inprocess inventory consists of inventory items that are partially completed on the balance sheet date. Finished goods are completed inventory items that are awaiting sale.

Firms usually report just one total inventory figure on the balance sheet. The composition of the inventory is found in the notes to the financial statements

Show Buttons
Hide Buttons