Question

In: Accounting

Select one manufacturer and one service business that you are familiar with and indicate what would...

Select one manufacturer and one service business that you are familiar with and indicate what would be included in the three types of inventory accounts. Use details that are unique to your businesses. As my example:

Manufacturer:

Raw Materials Inventory:

Work in Process Inventory:

Finished Goods Inventory:

Service Business:

Raw Materials Inventory:

Work in Process Inventory:

Finished Goods Inventory:

Expert Solution

Manufacturer: Puma

Raw Materials Inventory: Raw materials for Puma would be what they require to manufacture shoes, t-shirts, trackpants, caps etc. Which would be Polyester, Rubber, EVA foam, Cotton, Synthetic Leather, Leather, PVC, Buttons, Fabric.

Work in Process Inventory: Work in Process Inventory for Puma would be soles, that are yet to be attached to the upper part of the shoe or shoes which are yet to be attached to soles, laces which are yet to be added to shoes, t-shirts on which buttons are yet to be added or on which prints are yet to be added, or where branding has not been done still these all will be work in process.

Finished Goods Inventory: Shoes, T-shirts, Trackpants, Caps, Socks, Jerseys, Sweatshirts, Gym gloves.

Service Business: Starbucks

Raw Materials Inventory: Milk, Coffee beans, Plastic Cups, Sugar, Flour, Chocolate, Flavouring, Straws, Sprinkles.

Work in Process Inventory: Half baked cakes on which icing is to be added or cookie dough flour which is yet to be baked into cookies or coffee in which ingredients are missing ( it's only half done).

Finished Goods Inventory: Different types of coffee they provide: Cappuccino, Frappucino, Choco Java chip, Cold Coffee etc, also they're pastries and cookies.

ekkarill92 answered 3 months ago

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