ACCT 2001 Chapter : Ch 06 Study Guide
Document Summary
Chapter 6: reporting and analyzing inventory (note: this worksheet is intended as an optional study guide. Two steps in the reporting of inventory at the end of the period are: classification of inventory based on its degree of completeness, determination of inventory amount. Two common characteristics of inventory items in a merchandising company: they are owned by the company, they are in a form ready for sale to customers in the ordinary course of business. One; merchandise inventory is used to describe the many different items that make up the total inventory. Manufactured items that are completed and ready for sale. That portion of manufactured inventory that has begun the production process but is not yet complete. Basic goods that will be used in production but have not yet been placed in production. Many companies have significantly lowered inventory levels and costs using just-in-time inventory (jit) methods.
