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Lion's Is a Furniture Manufacturer

Question 82

Essay

Lion's is a furniture manufacturer.They sell to retail stores but also have a showroom at the plant where customers can buy directly from them.For each of the following items, indicate whether it would be classified as "supplies," "raw materials," "work-in-process," "finished goods" or "other." For any item you classified as "other," indicate how they would be accounted for.
A) Bolts of upholstery on hand for covering the furniture.
B) Upholstery fabric samples available for customers in the showroom.C) Desks displayed in the showroom for sale.
D) Desks in the showroom that the sales staff use when making sales.E) Nails and screws on hand in the manufacturing facility.
F) Stain on hand for staining the furniture
G) Furniture that has been assembled and is waiting to be stained
H) Furniture that has been shipped to a retail store customer.The customer arranged for and is paying for the shipping.

Correct Answer:

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A) Raw materials
B) Other - would be exp...

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