Berry Plastics is a manufacturer. Berry has inventory consisting of raw material
ID: 2337281 • Letter: B
Question
Berry Plastics is a manufacturer. Berry has inventory consisting of raw materials, work in process and finished goods totaling $24 million. Is Berry required to report the amounts for each class of inventory or can it just report the total of $24 million? Prepare a memo to me explaining your answer. You must provide Codification references to support your answer or you will receive a You answer should be in the FIRAC format discussed in the video or in class.
Do not be creative here! Facts Issue(s) (typically a question) Review of authoritative literature (ASC) Analysis (link the facts to the authority) Conclude (answer the issue question)
Explanation / Answer
Here are the points you can mention in your memo:
Barry Plastics needs to disclose following into his financial statements regarding inventory:
Well I do not have Codification references (as I do not have subsciption to the website of FASB) to support these of FASB nor I know which video is being referred in the question, Though the above points are prescribed by IAS 2 and also followed by FASB for US GAAP. You can incorporate these into your final memo and give the codes as discussed in the video