The four major types of inventory are: excess inventory, WIP inventory, finished goods inventory, and MRO...

The four major types of inventory are: excess inventory, WIP inventory, finished goods inventory, and MRO inventory.

True

False

Solutions

Expert Solution

The correct answer is option B.

Inventory is nothing but the stock or goods that are stored. The reason companies manage their inventory is to meet the demands which help the companies to carry out their supply chain management effectively.

The four types of inventory include:-

Raw material - these are the inputs that are required for production process to manufacture the output or good. Companies receive raw materials from the suppliers. Raw material management is important for proper and continuous operations to take place in an organization. Example Facebook raw material is pallets.
Work in progress - this refers to the inventory that are being manufactured within the organization or with the contract manufacturing companies. It is very important to monitor these inventories with the help of Enterprise Resource Planning (ERP).
Finished goods - this refers to the output that are being produced and kept in the warehouse or managed by the distributors. It is important for the organization to monitor the distributors effectively. Example - car is the finished good of a car manufacturing company.
Transit inventory - these inventories are those that are being transported from one location to other which requires time. These inventory are also called pipeline inventory. Example - car that are being transported from one location to another

keosha answered 1 year ago

Next > < Previous

Related Solutions

1.The finished goods beginning inventory = $100,000; The finished goods ending inventory = $50,000; The work...

1.The finished goods beginning inventory = $100,000; The finished goods ending inventory = $50,000; The work in process inventory at the beginning of the year was $150,000 and at the end of the year $50,000; The raw materials inventory at the beginning of the year $80,000 and at the end of the year was $40,000. Manufacturing costs and selling and administrative expenses were as follows: indirect materials = $10,000; factory utilities = $20,000; raw material purchases = $30,000 in June...

Beta uses process costing. It started the period with zero beginning inventory in WIP and Finished...

Beta uses process costing. It started the period with zero beginning inventory in WIP and Finished Goods inventory. It began work on 400 units during the period and incurred the following costs during the period. Direct materials are added at the beginning of the process followed by the conversion process. Direct Material Costs: $128,000 Conversion Costs: $74,400 At the end of the period, the degree of completion of the 400 units for each cost category was as follows: Direct...

Under applied over head 14,000 Finished goods inventory, beginning 310,000 Finished goods inventory, ending 380,000 Raw...

Under applied over head 14,000 Finished goods inventory, beginning 310,000 Finished goods inventory, ending 380,000 Raw materials inventory, beginning 110,000 Raw materials inventory, ending 95,000 Work in process inventory, beginning 105,000 Work in process inventory, ending 85,000 Selling expenses 180,000 Manufacturing overhead Applied 490,000 Direct labor 390,000 Administrative expenses 385,000 Purchases of raw materials 295,000 Sales 2,885,000 Required: 1) Prepare a schedule of Cost of Goods Sold for the year in good form? (Use the table given in the answer...

Company Inventory Info ITEM 1/1/2020 12/31/2020 RAW MATERIALS $34K $38K WIP $126K $145K FINISHED GOODS $76K...

Company Inventory Info ITEM 1/1/2020 12/31/2020 RAW MATERIALS $34K $38K WIP $126K $145K FINISHED GOODS $76K $68K COSTS INCURRED DURING THE YEAR 2020: RAW MATERIAL PURCHASED $232K WAGES TO FACTORY WORKERS 55K SALARY TO FACTORY SUPERVISORS 25K SALARY TO SELLING AND ADMIN STAFF 80K DEPRECIATION ON FACTORY BLDG AND EQUIP 20K DEPRECIATION ON OFFICE BLDG 24K UTILITIES FOR FACTORY BLDG $10K UTILITIES FOR OFFICE BLDG 7.5K SALES REVENUE DURING 2020 WAS $600K. THE TAX RATE=21% CALCULATE: 1. COST OF RAW...

Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At...

Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of June, Donewell Company had two jobs in process, Job 44 and Job 45, with the following accumulated cost information: Job 44 Job 45 Direct materials $4,800 $1,900 Direct labour 4,200 3,360 Applied overhead 2,400 1,920 Balance, June 1 $11,400 $7,180 During June, two more jobs (46 and 47) were started. The following direct materials and direct labour costs were added to...

In a production budget, if the number of units in finished goods inventory at the end...

In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of units in finished goods inventory at the beginning of the period, then the expected number of units sold is less than the number of units to be produced during the period.

If finished goods inventory increases between the beginning and the end of the year, then the...

If finished goods inventory increases between the beginning and the end of the year, then the cost of goods sold is smaller than the cost of goods manufactured. true or false

When there are no units in the beginning Finished Goods Inventory and the units produced are...

When there are no units in the beginning Finished Goods Inventory and the units produced are more than the units sold, the operating income will be higher under variable costing than absorption costing.

Dido Co.’s finished goods inventory policy is to hold enough inventory at the end of the...

Dido Co.’s finished goods inventory policy is to hold enough inventory at the end of the month to meet 22% of next month’s sales requirements. The cost and selling price of each unit of inventory is $19 and $29, respectively. Dido’s budgeted sales (in units) for the months June through September 20x1 is as follows: June 7510 July 5064 August 9826 September 2192 What is Dido’s budgeted production (in dollars) for the month of August 20x1? Select one: a. $8147...

During FY 2018, Towson Manufacturing had a beginning finished goods inventory of $18,000 & ending finished...

During FY 2018, Towson Manufacturing had a beginning finished goods inventory of $18,000 & ending finished goods inventory of $17,500. Beginning work-in-process was $14,000 and ending work-in-process was 10,500. Factory overhead was $22,500. The total manufacturing costs amounted to $270,000. Use this information to determine the FY 2018 Cost of Goods Sold. (Round enter as whole dollars only.)

Subjects