Finished goods inventory definition. Analyzing the definition of key terms often provides more insight about concepts. Finished goods inventory can be defined as – Account that controls the finished goods files, which acts as a subsidiary ledger (of the inventory account) in which the costs of finished goods that are ready for sale are recorded. Finished goods inventory is an inventory account, an inventory account needed for a manufacturing company to help categorize the stages of inventory. The stages of inventory for a manufacturing company generally start with raw materials that moves to work in process and is then moved to finished goods one complete. Finished goods inventory is similar to the inventory account for a merchandising company because this is the inventory ready for sale. Once sold we can record cost of goods sold as the expense account related to inventory and the reduction of finished goods inventory.
Why Learn Accounting - Financial Accounting / Managerial Accounting
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101 Double Entry Accounting System Explained - Accounting Equation
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101 Cash vs Accrual - Cash Method / Accrual method differenc
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101 Revenue Recognition Principle
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Double Entry Accounting System Explained - Balance Sheet
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101 Income Statement Introduction
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101 Accounting Objectives - Relevance Reliability Comparability
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101 Transaction Rules - Accounting Equation
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101 Transaction Throught Process / Steps - Accounting Equation
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101 Owner Deposits Cash Transaction Accounting Equation
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101 Work Completed for Cash Transaction Accounting Equation
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100.110 Pay Employee with Cash Transaction Accounting Equati
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200 Debits & Credits Normal Balance - Double Entry Accounting Sy
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200 Debits & Credits - One Rule to Rule Them All
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