ACCT 110 Chapter Notes - Chapter 8: Santa Barbara City College, Finished Good, Consignor
Document Summary
Include current and long-term liabilities in calculating debt. Merchandise inventory is often referred to as unsold units left on hand at each reporting date. Manufacturing companies tend to have inventory in three forms: Raw materials: amounts for goods and materials that are on hand but have not yet gone into production. Work-in-process: the cost of raw material on which production has started but is not yet complete, plus the direct labour costs applied specifically to this material and its applicable share of manufacturing overhead costs. Finished goods: the costs associated with the completed but still unsold units on hand. They have cost of goods manufactured and cost of goods sold. Cost of goods manufactured is the cost of the goods from the raw materials and work-in-process stages --> this transfers to finished goods once complete. Beginning finished goods inventory + cost of goods. Manufactured = finished goods available for sale . Ending finished goods inventory = cost of goods.
