Identify types of companies and inventories (Learning Objective 1)

Fill in the blanks with one of the following terms: manufacturing, service, merchandis¬ ing, retailer(s), wholesaler(s), raw materials inventory, merchandise inventory, work in process inventory, finished goods inventory, freight-in, the cost of merchandise.

a. -companies generally have no inventory.

b. Boeing isa--company.

c. Merchandisers’ inventory consistsof_and_

d. _companies carry three types of inventories:-, ---, and-

e. Prudential Insurance Company is a-company.

f. Two types of_companies include-and-
g. Direct materials are storedin-
h. Sears is a -company.
i. Manufacturers sell from their stockof-
j. Labor costs usually account for the highest percentageof-
companies’ costs.
k. Partially completed units are kept inthe-