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       AccountingTermsDictionary  | 
  
| U.S. GAAP Codification | Accounting Topics | 
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      Accounting Terms Dictionary  | 
  
| Principles of Accounting, U.S. GAAP Financial Reporting Guide | 
| Accounting by Topic, Accounting Terms Dictionary | 
| Accounting Terms Dictionary | 
| Classification of inventory | 
| Classification of inventory Inventory items are classified based on --> where they are in the production process 1. Merchandise --> goods purchased from other entities --> for the purpose of reselling to customers 2. Raw materials --> materials and parts purchased from other entities --> for the purpose of using them in the production process 3. Work in process --> materials and parts currently in the production process 4. Finished goods --> goods that completed the productions process --> goods that are ready for sale to customers  | 
  
| Index of Accounting Terms Dictionary | 
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