Question
Hi, I'm currently doing an accounting case and I was wondering about this following statement: On a tour of CEM's manufacturing facility, I noticed that
Hi, I'm currently doing an accounting case and I was wondering about this following statement:
"On a tour of CEM's manufacturing facility, I noticed that their facilities have good security with cameras installed that have a view of all of the areas where inventory is stored. THere is a large holding area with various parts, nuts, bolts, and wire coils, etc. THe chief financial officer indicated that CEM keeps these leftover parts and supplies from finished construction projects in inventory "just in case we ever find a use for them. This inventory is set up in our accounting records."
Should the leftover parts and supplies be expensed instead of being put back in inventory? Should they be reported as supplies and not inventory? Please help
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