The Mountain-Top Realty Company has decided to develop the mountain area around Hitown and has purchased several plots of mountainside property. In addition, the company acts as a realtor for existing homes in the area. Greg Hatch has recently graduated from school with an accounting degree and has been hired to work as Mountain-Top’s accountant. Greg’s favorite topic in intermediate accounting was inventory, and he’s disappointed that he works for a firm without any inventory and its related problems. Marie Bowman, sales manager, overhears Greg mentioning this to a friend at lunch. “But we do have inventory, Greg, and I think you might be surprised at how many accounting problems a realtor can have with the inventory.”
1. What is the nature of Mountain-Top’s inventory?
2. To what problems do you think Marie was referring?
3. Other types of companies have “different” kinds of inventory. What is the strangest kind of “inventory” you have ever heard of?