The finished inventory, aka Cost of Goods Sold, is determined by either
a. Cost of Goods Available for Sale less Cost of Ending Inventory
or
b. Using either LIFO, FIFO or Weighted Average method of cost-flow calculation.
Determine demand based on historical sales records. Then determine the amount of time it takes for the supplier to ship goods to the store. Then figure out what the minimum amount of inventory you could survive on without completely running out during the ordering/shipping period. Set up your inventory ordering person or computer to automatically order a new shipment when your inventory hits that minimum inventory level.
View the unrestricted stock status for the material
How to determine the total dollar amount of assets and how they can be classified as current assests.
YES
Inventory conversion period tells that how many days it is require to convert inventory to finished goods while inventory turnover tell in number of times that how many times inventory turned into finished goods in one fiscal year.
By taking a physical count. They will take their recorded amount and subtract the physical count to analyze inventory shrinkage.
Determine demand based on historical sales records. Then determine the amount of time it takes for the supplier to ship goods to the store. Then figure out what the minimum amount of inventory you could survive on without completely running out during the ordering/shipping period. Set up your inventory ordering person or computer to automatically order a new shipment when your inventory hits that minimum inventory level.
View the unrestricted stock status for the material
How to determine the total dollar amount of assets and how they can be classified as current assests.
YES
Inventory conversion period tells that how many days it is require to convert inventory to finished goods while inventory turnover tell in number of times that how many times inventory turned into finished goods in one fiscal year.
The high risk of finished goods inventory is the risk of loss of inventory due to theft, spoilage, or even fire. Storing finished goods is also expensive and if the market changes, can destroy a business.
through a complex analysis, management attempts to determine the minimum amount of product needed to do the job and still keep the cost of inventory as low as possible.
A finished goods inventory turnover ratio is the rate that the inventory is used over a period of time. This measurement shows a company how it is doing in general. If there is too much inventory, then a company isn't doing that well.
1 - Raw material Inventory 2 - Work in process inventory 3 - Finished Goods inventory
Increase Inventory - Purchase Dr - InventoryCr - Accounts Payable or CashIncrease Inventory - Manufacturing Completion Dr - Inventory (Finished Goods)Cr - Work in Process or Raw Materials Movement in Manufacturing - Beginning Production Dr - Inventory - Work In ProcessCr - Inventory - Raw Materials Sale of Inventory Dr - Accounts Receivable or CashCr - Inventory - Finished Goods
conclusive