Inventory

 


Inventory is the goods that are available to sell including raw material which are used to produce organization’s products. In general, inventory can be classified into three categories as raw material, work in progress and finished goods. In accounting, inventory is considered as a current asset which is planned to sell within a year.

Raw materials are the materials which are used for the production of goods.








Work in progress inventory refers to the items which are partially processed and waiting for the completion. This inventory can be seen on the production flow.





Finished products refers to the products which are completed and ready to sale. Such inventories have been gone through the entire production process. 








Author: D.T.Wickramage
Date   : 25 July 2023





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