Question

S3-3 (book/static) EQuestion Help Kirkland Furniture is a manufacturing plant that makes a variety of tables, benches, and other furniture. Indicate which inventory account(s) would be affected by the following actions that occur at Kirkland's in the process of manufacturing its standard picnic tables. Also indicate whether the inventory account would increase or decrease as a result of the action. (Leave any unused cells blank.) Raw Materials Inventory Work in Process Inventory Finished Goods nventory Action a Lumber is delivered by the supplier to the plant, where it is stored in a materials storeroom until needed Lumber is requisitioned from the storeroom to be used for tops and seats for the tables. Factory workers cut the lumber for the tables b. d. ive tables are completed and moved to the inventory storage area to await sale e. A customer purchases a table and takes it home

Answer 1

Raw material Inventory: It is the total cost of component parts currently in stock that have not been used in work in process inventory and Finished goods inventory. *Work in Process Inventory: It is company's partially finished goods waiting for completion in to finished products. Finished Goods Inventory: It is company's finished product by way of manufacturing processes and which is in readily saleable *form Work in Finished Raw material Process Goods Action Lumber is delivered by the supplier to the plant, where it is stored in a materials a storeroom until needed Increase Lumber is requistioned from the storeroom c Factory workers cut the Lumber for tables Increase Five tables are completed and moved to A customer purchases a table and takes it e home