BUS 251 Lecture Notes - Lecture 7: Perpetual Inventory, Barcode Reader, Combined Gas And Steam

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Maureen Fizzel

Document Summary

There are different types or classifications of inventory. Raw material: all of the items required to make the product (wood, plastic, fabric, nails, glue, and other items needed) Work-in-process: used to record the costs of products that have been started but have not been completed at the end of the accounting period. Include the costs of raw materials plus labour costs and overhead costs. Overhead costs: other manufacturing costs such as utilities and depreciation of the manufacturing facility. The full cost of making the product is transferred from the work-in- The inventory of a retailer includes the products it has purchased to sell to its customers, while the inventory of a manufacturer includes raw materials, work- in-process, and finished goods. Determining whether or not goods should be included in inventory can be complicated. The buyer is responsible for paying shipping and any other costs incurred while the goods are in transit from the seller"s premise to the buyer"s premise.