BU127 Lecture Notes - Lecture 7: Tangible Property, European Cooperation In Science And Technology, Uptodate
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Document Summary
Goods held for resale in the normal course of business. The goods are acquired in a finished condition and are ready for sale without further processing. These items are included in raw materials inventory until they are used, at which point they become part of work in process inventory. Goods in the process of being manufactured but not yet complete. When completed, work in process inventory becomes finished goods inventory. Manufactured goods that are complete and ready for sale. Inventory - tangible property held for sale in the normal course of business or used in producing goods or services for sale or used in producing goods or services for sale. Cost principle - requires that inventory be recorded at the price paid or the consideration given. Merchandiser purchased - purchases inventory that is in ready to sell condition. Merchandiser inventory- purchased, the merchandise inventory account is increased. Additions to inventory on the statement of final position.
