Free Guide to
Bookkeeping Concepts

Accounting Bookkeeping Concepts PDF Cover

Receive our free 18-page Guide to Bookkeeping Concepts (PDF) when you subscribe to our free newsletter.

You are already subscribed. This offer is not available to existing subscribers.
Step 2: Please check your email and click the confirmation link.


What are the disclosures for a manufacturer's inventory?

A manufacturer should disclose the following categories of inventory: raw materials, work-in-process, finished goods, manufacturing supplies, and packaging supplies. When some of these amounts are not significant, some categories may be combined, such as raw materials and supplies, or raw materials and work-in-process.

In addition, a manufacturer (and others with inventory) should disclose the method for valuing the inventory. This includes whether it is cost or the lower of cost or net realizable value, and also the cost flow assumption such as 1) first-in, first-out or FIFO, 2) last-in, first-out or LIFO, 3) weighted average, etc. If LIFO is used, the company must disclose what the dollar amount of inventory would have been if FIFO had been used.