Which materials fall under the 'raw goods' type of inventory?
Asked a year ago
Hi there! I have found out that 'raw goods' represent an asset on the balance sheet of a company. However, I do not know anything about 'raw goods,' despite the fact that it is a type of inventory. Which materials fall under this category?
Monday, November 14, 2022
Raw material inventory constitutes the sum of all the in-stock supplies that are not currently being produced. The raw materials used in this type of inventory can be broadly classified into two categories:
- Direct materials: They are consumed directly in the manufacture of goods.
- Indirect material: These are not a component of your final product but help in the manufacturing process.
Please follow our Community Guidelines
Preventing Obsolete Inventory in Shopify: 4 Best Practices
What Types of Products Are Best Sellers on Shopify?
Decoupling Inventory: How Can This Help Your Business?