INVENTORY

Items of assets owned by the company to be sold in the normal business operations, or items to be used in making or consumption of goods to be sold
Manufacturing firms produce goods to be sold to a trading company has three inventory accounts, namely:

1. raw goods
2. Work in progress
3. finished goods

Fees charged to the goods and raw materials that are in the hands but not yet reported as diverted to the production of raw material inventory.

Cost of raw materials for products that have been made ​​but not yet completed, plus the cost of direct labor applied specifically to the raw material and overhead costs are allocated, a process inventory.

Costs associated with products that have been completed but not yet sold by the end of the fiscal period are reported as finished goods inventory.