Question 1

Indicate whether the following would be considered inventory for a public company like Ford Motor Corporation. If so, indicate the inventory category to which that item would belong.

(a)		Engines purchased to make the Ford F-150		select an inventory category Finished Goods Inventory Other Raw Materials Inventory Work in Process Inventory
(b)		Nuts and bolts purchased to attach the engine to the car body		Finished Goods Inventory Other Raw Materials Inventory Work in Process Inventory
(c)		Spare parts purchased for the manufacturing equipment		Finished Goods Inventory Other Raw Materials Inventory Work in Process Inventory
(d)		Standby equipment in case a machine breaks down		Finished Goods Inventory Other Raw Materials Inventory Work in Process Inventory
(e)		Wages paid to assembly-line employees		Finished Goods Inventory Other Raw Materials Inventory Work in Process Inventory
(f)		Rent for a manufacturing facility		Finished Goods Inventory Other Raw Materials Inventory Work in Process Inventory
(g)		Wages paid to a supervisor		Finished Goods Inventory Other Raw Materials Inventory Work in Process Inventory
(h)		Ford F-150 ready to be shipped to the dealer		Finished Goods Inventory Other Raw Materials Inventory Work in Process Inventory
(i)		Manufacturing plant		Finished Goods Inventory Other Raw Materials Inventory Work in Process Inventory

How would your responses change if the manufacturer followed ASPE?

The response would select an option under ASPE.

Achange

Bremain unchanged