Inventories

{
  "id": "MLC-T-ECS-000997",
  "term": "Inventories",
  "field": "Economic statistics",
  "definitions": [
    "The value of products that a company intends to sell or use in the fulfillment of services they intend to sell.\n\nThese items are comprised of finished goods, work-in-process, and materials, supplies, fuels, etc. Materials inventories refer to goods that are raw inputs to the manufacturing process, and that will be substantially altered to produce an establishment's output. Work-in-process inventories refer to goods that have been substantially transformed in the manufacturing process, but that are not yet the final output of the establishment. Finished goods are goods that represent the final output of the establishment, but that are still within ownership of the establishment.",
    "(Manufacturing) Total inventories represent the value of the end-of-month stocks regardless of stage of fabrication (whether in the form of purchased materials and supplies, work in process, or finished goods). These inventories are valued at cost using any valuation method other than LIFO. Inventories associated with the non-manufacturing activities of your company are excluded.",
    "(Retail) Merchandise inventories are the value of stocks of goods held for sale. The inventories estimates represent the value, at cost, of the merchandise available for sale.\n\nMethods of valuation may vary according to the accounting practices of each firm. LIFO is a method of valuing inventory where the latest items of merchandise added to the inventory are the first ones taken out. Non-LIFO would mean that another method, such as FIFO (first in, first out), was used to establish the value of the inventory available for sale."
  ],
  "see_also": [
    "Inventories",
    "Inventories (Retail)",
    "Inventories (Manufacturing)"
  ],
  "references": [
    "U.S. Census Bureau Glossary"
  ],
  "url": "https://mlchart.com/terminology/economic-statistics/inventories/"
}