Introduction
Hello there, future accounting wizards! Today, we’re delving into the mysterious backstage of businesses: Inventory. Yes, that’s right, the unseen world where products live, chill, and occasionally get counted meticulously 👀. Prepare for a fun ride through stock, raw materials, work in progress (WIP for insiders), and finished goods!
We’ll hobnob with balance sheets and make sure you never look at a “stock count” the same way again! Fair warning: Side effects may include uncontrollable bouts of accounting enthusiasm. Let’s dive in!
🎨 Inventory – The Whole Enchilada
So, what in the world is inventory? According to the almighty Accounting Dictionary, inventory is the products or supplies of an organization on hand or in transit at any time. Imagine this as the backstage crew of a rockstar concert – unseen but essential. For manufacturing companies, inventory is classified as:
- Raw materials: Literally just sitting there, minding their own
