p=₹3,2000;R=17/half %p.a;n=2years
Answers
Step-by-step explanation:
Direct raw materials are placed in current assets as discussed above. Direct raw materials are expensed on the income statement within cost of goods sold. Manufacturing companies must also take added steps over non-manufacturing companies to create more detailed expense reporting on costs of goods sold. Direct raw materials are typically considered variable costs since the amount used depends on the quantities being produced.
Direct Raw Materials Budget
A manufacturer calculates the amount of direct raw materials it needs for specific periods to ensure there are no shortages. By closely tracking the amount of direct raw materials bought and used, an entity can reduce unnecessary inventory stock, potentially lower ordering costs, and reduce the risk of material obsolescence.
Raw materials may degrade in storage or become unusable in a product for various reasons. In this case, the company declares them obsolete. If this occurs, the company expenses the inventory as a debit to write-offs and credits the obsolete inventory to decrease assets.
KEY TAKEAWAYS
The primary production or manufacturing of goods requires raw materials.
The value of direct raw materials inventory appears as a current asset on the balance sheet.
Africa, the Middle East, and China have the world's largest supplies of natural resources as a percentage of their GDP.
Real-World Example
Africa, the Middle East, and China are thought to have the world's largest supplies of natural resources. According to World Bank data, the Congo Republic, South Sudan, Libya, and Iraq round out the world’s top natural resource producers by percentage of gross domestic product (GDP). The top producers as of 2018 by GDP include the following:
Congo Republic 54.9%
Mongolia 40.1%
Libya 43.4%
Iraq 45.7%
Kuwait 43.1%
Suriname 29.2%
Congo, Dem. Rep. 25.5%
Timor-Leste 33.5%
Guyana 19.7%
Liberia 21.6%
Equatorial Guinea 33.7%
Mauritania 16.2%
Saudi Arabia 29.5%1
The World Bank calculates these percentages using natural resource rent. Natural resource rent is the revenue remaining after the deduction of the cost to access resources.
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ARTICLE SOURCES
Related Terms
Goods-In-Process Definition
Goods-in-process is a part of an inventory account on the balance sheet of a company, relating to partially completed goods not yet ready for sale. more
Manufacturing Production
Manufacturing production refers to methods used to manufacture and produce goods for sale. Read how efficient manufacturing production increases profits. more
What Work-in-Progress Really Means
A work-in-progress (WIP) is a partially finished good awaiting completion and includes such costs as overhead, labor, and raw materials. more
Absorption Costing Definition
Absorption costing is a managerial accounting cost method of capturing all costs associated with manufacturing a particular product to include in its cost base. more
Understanding Cost of Goods Sold – COGS
Cost of goods sold (COGS) is defined as the direct costs attributable to the production of the goods sold in a company. more
Capital Goods Definition
Capital goods are tangible assets that a business uses to produce consumer goods or services. Buildings, machinery, and equipment are all examples of capital goods. more
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Raw materials are materials or substances used in the primary production or manufacturing of goods. Raw materials are commodities that are bought and sold on commodities exchanges worldwide. Traders buy and sell raw materials in what is called the factor market because raw materials are factors of production as are labor and capital.
Raw Materials
Raw Materials Explained
Raw materials are used in a multitude of products. They can take many different forms. The kind of raw materials inventory a company needs will depend on the type of manufacturing they do. For manufacturing companies, raw materials inventory requires detailed budgeting and a special framework for accounting on the balance sheet and income statement
Answer:
it's profit and loss
Step-by-step explanation:
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