Introductory Accounting

CHAPTER5

Accounting for Inventory

In This Chapter

• What inventory is and why we care about accounting for it
• Different types of inventory items
• Methods of valuing inventory
• Counting your physical inventory
• Inventory reporting

Businesses come in all shapes and sizes and offer a variety of products and services for sale. When a business creates and sells a physical product, it generally keeps a stock of that product on hand as inventory. A business also might house a supply of raw materials for creating finished inventory. You might resell products you don’t physically stock on-site, or you might need to standardize prices and descriptions for ...