Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. how is the inventory in a merchandising business d

How is the inventory in a merchandising business different from the inventory in a manufacturing...

70.2K

Verified Solution

Question

Accounting

image
How is the inventory in a merchandising business different from the inventory in a manufacturing business? In a merchandising business, there is work-in-process inventory, in a manufacturing business there is no work-in-process inventory. In a merchandising business, final inventory cost includes materials, labor and overhead; in a manufacturing business final inventory cost includes only the original purchase cost of the inventory. In a manufacturing business, there is just one category of inventory, in a merchandising business there are three categories of inventory. in a merchandising business, there is just one category of imventory; in a manufacturing business there are three categories of inventory. With a perpetual inventory system, how are inventory purchases and sales recorded? Inventory records are not updated when a sale is made; only the dollar amount of the sale is recorded. inventory records are updated whenever a purchase or a sale is made. Sales are reported only when cash is collected; no accounts receivable are recorded. Inventory records are not updated when a purchase is made; only the dollar amount of the purchase is recorded. Increase in liabilities Increase in assets Decrease in liabilities Increase in expenses

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students