Manufacturing Inventory Classified: Raw Materials, WIP & Finished Goods
This video explains inventory classification for merchandising and manufacturing companies, detailing how inventory is reported on financial statements. We look at real-world examples, covering the relation between inventory, sales, and cost of goods sold (COGS), and breaking down manufacturing inventory into raw materials, work-in-process, and finished goods. This is essential for understanding financial accounting and the balance sheet.
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Timeline:
00:00 Introduction
00:32 Merchandising Inventory, Matching Sales and Cost of Goods Sold
00:56 What is Included in the Cost of Inventory
01:05 How to Ind Financial Statements of a Publicly Traded Company
02:01 EXAMPLE: Home Depot (Form 10K)
03:19 Manufacturing Inventory Classification
04:03 EXAMPLE: Tesla (Form 10K)
06:26 Recommended Videos and Playlists
The textbooks used in this video: Financial Accounting, Jan R. Williams. Publisher: McGraw-Hill. Survey of Accounting, Carl S. Warren. Publisher: Cengage Learning.
Additional resources:
https://www.amsa-online.com/free-reso...
American Modern School of Accounting is a nonprofit online vocational school that offers several programs to help adult learners to start or advance their careers in bookkeeping and accounting.
We offer the following programs:
• Certificate in Computerized Accounting with QuickBooks
• Certificate in Computerized Bookkeeping with QuickBooks
• Certificate in Computerized Bookkeeping with QuickBooks (Budget Plan)
For more information, visit our website: https://www.amsa-online.com/
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