What is inventory?

Inventory comprises three categories: raw materials, work in
process and finished goods.

Raw Materials. These are any items or materials you purchase that are transformed
into your precast manufactured products. Common examples are rebar and concrete.
Note that concrete forms or other tooling items that are reused are not raw materials.
Any manufactured items or subassemblies that you purchase for use in your own
products are also considered raw materials. For example, steel door assemblies
purchased for use in precast storm shelters would be classified as raw materials.

Work in Process. This category includes your precast products as they are being
manufactured. It is characterized by the application of labor to transform raw materials
into the discrete precast products that you manufacture and sell. For example, the
minute you begin assembling rebar into a form, its classification changes from raw
material to work in process.

Finished Goods. These include your precast products after all manufacturing activity
has been completed and the products are ready for sale and delivery to a customer.
Because transformation of raw materials has already been completed, any additional
labor typically relates only to storage and delivery.