Inventory

1. Inventories are asset items held for sale in the ordinary course of business or goods that will be used or consumed in the production of goods to be sold. Inventories are often classified as retail inventories (held for sale), raw materials inventory, work in process (WIP) inventory, and finished goods inventory. The actual raw materials, supplies, goods on hand, goods in process of manufacture, and goods in transit, in storage, or consigned to others, or the act of accounting for, listing, and pricing inventory.