3 Types of Inventory (Raw Materials, WIP, and Finished Goods)

This video discusses the three different types of inventory for manufacturing firms: raw materials, work in process (WIP), and finished goods. An example is provided to illustrate the concepts and demonstrate how the three types of inventory are used to calculate total inventory.
-
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
-
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
eepurl.com/dIaa5z
-
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
-
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
edspira.thinki...
-
LISTEN TO THE SCHEME PODCAST
Apple Podcasts: podcasts.apple...
Spotify: open.spotify.c...
Website: www.edspira.co...
-
GET TAX TIPS ON TIKTOK
/ prof_mclaughlin
-
ACCESS INDEX OF VIDEOS
www.edspira.co...
-
CONNECT WITH EDSPIRA
Facebook: / edspira
Instagram: / edspiradotcom
LinkedIn: / edspira
-
CONNECT WITH MICHAEL
Twitter: / prof_mclaughlin
LinkedIn: / prof-michael-mclaughlin
-
ABOUT EDSPIRA AND ITS CREATOR
www.edspira.co...
michaelmclaugh...

[@waxenapple1195]

These videos are single-handedly helping me pass my cost accounting test and helping me understand the material rather than just memorize it.

[@Edspira]

That's great to hear!

[@MyFinancialFocus]

I like that the financial statements keep track of inventory through every step of the manufacturing process. Super cool.

[@sadafm8757]

Thank you so much for these videos. I hope I can give back someday the way you did by making these free videos!

[@jassimon2853]

Well done, easy to understand.

[@Runsheeg53633]

Damn. this is was so easy to follow and understand. Be blessed.

[@Cheesecake99YearsAgo]

Is packing part of WIP or FG inventory?

[@ivyowino858]

Thank. you so much for your video. Really helpful

[@ahmedshamou7891]

thanks for very simple and informative

[@kazomazo6646]

What is the field your studies?

[@ahmedshamou7891]

Kazo Mazo MBA in international business

[@ash_thegamer17]

you teach better then my own teacher lol.

[@Edspira]

Thank you!

[@florainelacanilao1260]

Thank you so much

[@francescociccone2224]

well done

[@farzadnoori7047]

Very helpful, thank you very much

[@dostonjonravshanov3068]

Thanks for teaching

[@marielpacificador4312]

How about this situation po? I hope you can help me and clarity this problem to me. Thank you very much. 😊💕 Finished Goods 70,000 Raw Materials put in production 50,000 Work in Process (80%) completed from combined cost of raw materials and labor of 100,000 How much is the ending inventory?

[@dewiika5902]

hi can you explain more about standar costing vs actual costing?

[@noahsilas2461]

My questions is, how do I account for a write down in the finished goods account???

[@hotphug]

Thanks for information

[@Alnoor20121]

Thank you very much..

[@peteralan1835]

hi thanks so much I could not get RM, WIP and FW

[@yoshinegus4019]

My question is: are RM's different than DM's?

[@ESTITTIES]

Yoshi Negus no

[@lowkaiyang9310]

i think it is different .Raw material included direct material and indirect material .Please correct me if I, m wrong.

[@hiba3611]

@@lowkaiyang9310 see Direct materials are materials which are directly related to producing a god such as the steel required for manufacturing car. The indirect materials would be the electricity of the factory ,air conditioning , lights etc. Hope you get it!!!

[@shincorpez]

👏👏👏