What is the amount of finished goods inventory on the balance sheet at year-end

Posted on 11.09.2018 by Admin
Finished Goods is a term most associated with manufacturing companies. Inventory is not an income statement account. What is the amount of finished goods inventory on the balance sheet at year-end. Home Accounting Dictionary What is Finished Goods Inventory.
Reporting of Inventory on Financial Statements Inventory is an asset and its ending balance is reported in the current asset section of a company's balance sheet. They then sell those products directly to consumers or to wholesale and retail customers. Manufacturers transform raw materials into new products. This is the end of the preview. If you do not intend to create a budgeted balance sheet, there is no need to create an ending finished goods inventory budget.
The inventory figure on the balance sheet presents an interesting, if not unique, problem. Most of the time we think of larger companies as manufacturers. This is the reason why the inventory simply carries over as retained earnings from one accounting period to the next. There is the weighted average inventory method. Sign up to access the rest of the document. These goods are completely finished, made it through the production process, and ready for consumers to buy.