Inventories - Acctg.1 Poem by Ging Ollado

Inventories are assets and not liabilities
Held for sale in the normal course of business
Form of materials to be consumed in the production process
As well supplies in rendering of services.
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Inventories are classified in two not in one thing
They are the merchandising and the manufacturing
Merchandising are just good for retailing
As manufacturing for wholesaling.
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Measuring inventories through cost of conversion
Includes costs directly related to the units of production
Such as direct labor and systematic allocation
Of fixed and variable overheads in the production.
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Measuring inventories through cost of purchase
Includes purchase price, transport, handling and import duties.
Attributable to the acquisition of finished goods and services
Deduction of similar items, trade accounts and rebates.
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Inventories have also exclusion
Wasted materials, labor, or other costs of production
Selling and storage cost not prior to production condition
And administrative overheads that do not bring inventories in their present location.