Hello Oat and Sangud,
Please see the attached copy of the FS Draft in order to better understand my comments.
I apologize for the confusion earlier and not explaining things more clearly. What I would like to see is the cost for acrylic panels/sheet purchased from RPTAsia which have been placed into production classified in the ‘Inventoried Product’ COS account on the Income Statement rather than the ‘Raw Material’ COS account. Does this make sense?
This will be especially helpful when we combine the FS for RPTA and RPTD each month. This way, ‘Raw Material’ on the Income Statement will reflect the costs of MMA and other true ‘raw materials’ that go into casting sheet, and ‘Inventoried Product’ will reflect the cost of finished sheet purchased or pulled from Inventory and placed into production.
Does this make sense to you both, or do you have other thoughts as to why we should continue classifying purchased sheet costs as we have? Please just let me know.
If you are in agreement with this reclassification, please modify the FS accordingly for the Sep’14 and YTD amounts, and finalize and distribute the FS.