Inventory for a typical business entity.
Includes property held for resale, property in the process of production, and property consumed in the process of production.
Merchandise Included in Ending Inventory.
All owned inventory, regardless of location.
Determination of Ownership of Goods Shipped FOB Destination.
The seller owns the goods until they reach destination.
Owner of Consigned Goods.
The consignor (firm that shipped the inventory to consignee).
Is fixed overhead one of the four manufacturing input costs?
Yes, this is one of the input costs.
Costs of Inventory to capitalize.
All costs necessary to bring the item of inventory to salable condition.
Fixed overhead rates.
Subject to estimation errors and are affected by the choice of denominator measure, and the budgeting horizon reflected in the denominator.