Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 8 - Valuation of Inventories: A Cost-Basis Approach - Review and Practice - Questions - Page 421: 1

Answer

In a retailing inventory normally consists of only one category, that is the product awaiting resale. In a manufacturing enterprise, inventories include finished goods, work in progress as well as raw materials.

Work Step by Step

In some cases, in manufacturing supplies inventory account is also included.
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