Qualcomm Incorporated (QCOM) is a leading developer and manufacturer of digital wireless telecommunications products and services. Qualcomm reported the following inventories (in millions) in the notes to recent financial statements:
Raw materials ....................... $1
Work in process .................. 550
Finished goods .................... 941
................................... $ 1,492
a. Why does Qualcomm report three different inventories?
b. What costs are included in each of the three inventory accounts?