This schedule is tailored for small businesses.
The Oklahoma Balance Sheet Support Schedule — Inventory is a financial document that provides a comprehensive breakdown of an entity's inventory holdings, highlighting its value, composition, and any changes over a specific period. This schedule is vital for businesses, banks, auditors, and investors as it helps assess the financial health and efficiency of an organization's inventory management. The Inventory Support Schedule focuses on the different types of inventory owned by a company. These can include: 1. Raw Materials: This category comprises the primary inputs used in the production process. These materials might include steel, wood, fabrics, chemicals, etc. 2. Work-in-Progress (WIP): WIP inventory represents goods that are in various stages of completion but haven't reached the final product stage. In manufacturing, WIP can be found on the assembly line or in the production area. 3. Finished Goods: This group includes products that have completed the manufacturing process and are ready for sale or distribution to customers. 4. Merchandise Inventory: Refers to the inventory held by retailers or wholesalers for immediate sale. This can include a wide range of products such as clothing, electronics, groceries, etc. The Oklahoma Balance Sheet Support Schedule — Inventory discloses the value of each inventory type using relevant keywords: 1. Inventory Valuation: This section focuses on various valuation methods used by the company (e.g., First-In-First-Out "FIFO," Last-In-First-Out "LIFO," or Average Cost) to determine the cost of inventory. 2. Description of Costing Method: Provides an explanation of the inventory costing method(s) used by the company along with detailed calculations for each inventory type. 3. Inventory Quantities: This section lists the physical quantities of each inventory type, specifying the units of measure (such as pounds, gallons, units, etc.) to provide a clear picture of the volume of inventory held. 4. Inventory Value: This part reveals the monetary value assigned to each inventory type based on the chosen valuation method. The total inventory value (sum of all types) is used in the balance sheet to calculate the company's assets. By analyzing the balance sheet support schedule, stakeholders can gain insights into the composition, valuation, and turnover of a company's inventory. This information helps evaluate inventory management efficiency, identify potential issues (e.g., inventory obsolescence or overstocking), and make informed decisions about production, sales, and financial strategies.
