Question

Brinker International, Inc. is the parent company that owns casual dining chains Chili’s Grill and Bar and Maggiano’s Little Italy. You can learn more about the company at http://brinker.com. In its 2015 annual report, Brinker reported $23,035,000 in inventories on June 24, 2015. Would you expect Brinker to use all three categories of inventory – Raw Materials, Work in Process, and Finished Goods? Why or why not?

Answer 1

Yes the inventory of Brinker International, Inc includes all the three categories of inventory i.e, Rawmaterial, work in progress, and finished good.

As per the Accounting standard -2 Valuation of inventories it is defined as goods that are defined at various stages that are being ready for sale that is Rawmaterial, work in progress and finished good and it is the current asset that is being ready for sale with in ashort period of time.

Therefore the presentation made by the company includes all the three categories of invrntory and it only includes cost incuured up to that stage of production in case of work in progress