Manufacturing inventory accounts: What is in each?
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Manufacturers use three inventory accounts.
Materials inventory
Work in Process Inventory
Finished goods inventory
Explain what costs each contain.
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Solution Summary
The solution is 202 words and explains the contents of each and whether they differ between process costing and job costing and why.
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Job Order and Process Costing
Materials inventory
This account contains the ingredients to make the items. It can have both direct materials and indirect materials, although it is often just direct materials as indirect materials may be expensed to overhead when purchased (depending on magnitude and policy). There is no difference between job ...
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