For Manufacturing Business :-
Manufacturing firms purchase the raw materials and convert the raw materials into finished goods. So they have three types of inventories. Which are -
(i) Raw materials.
(ii) Work In Process. and
(iii) Finished goods.
For a Merchandising Business :-
Merchandising Firms are engaged in a business where they purchase goods and sell them again. They do only buy and sell, they do not make the product. They have only one inventory which is simply called inventories.
Manufacturing firms purchase the raw materials and convert the raw materials into finished goods. So they have three types of inventories. Which are -
(i) Raw materials.
(ii) Work In Process. and
(iii) Finished goods.
For a Merchandising Business :-
Merchandising Firms are engaged in a business where they purchase goods and sell them again. They do only buy and sell, they do not make the product. They have only one inventory which is simply called inventories.
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