Question

Name the three inventory accounts for a manufacturing business and indicate the order in which they should be presented on the Balance Sheet. Indicate the inventory accounts used by NIKE corporation and include the amounts of each. What is the amount for Cost of Goods Manufactured on the Income Statement? Does your corporation show an actual Statement of Cost of Goods Manufactured in its Notes to the Financial Statement?

Answer 1

Solution:

In the manufacturing business the three inventory which are considered and recorded are Inventory of Raw Material, Inventory of Work in Progress and Inventory of the Finished Goods. All these three are presented in the balance sheet under current assets.

The inventory of the NIKE in the year 2017 is $5055000 and in 2018 the same is $ 5262000. The cost of manufacture is $20441000 in the year 2018 and in 2017 the same was $ 19038000. The company disclose the same in details in the notes of accounts. The details of the inventory and each elements of the inventory are disclosed along with the amount in the notes of accounts. Also the cost of manufacture with details are explained in the notes part of the financial statement.

References:

Yahoo is now part of Oath. (2018). Retrieved from https://finance.yahoo.com/quote/NKE/financials?p=NKE