Identify a company in your local community that develops a product through some form of manufacturing process. Consider a farming operation, bakery, cement supplier, or other company that converts or assembles inputs to develop a different product.
Instructions
Write a report on the company's inventory. Suggestions: Visit the manufacturing site, view a video of the operation, or speak to company management. Identify what types of costs are incurred in the manufacturing process. Determine which costs are included in inventory cost in the accounting records, and explain why some may he treated as period costs. Does the company use a periodic or a perpetual system? "What cost formula does the company use? How does the company determine NRV, or does it?