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Wal-Mart gets their inventory in a ready to sell state. That means no extra cost goes into getting it ready to put on the shelf. So when a Wal-Mart accountant takes in invoices of merchandise purchased the price Wal-Mart paid was the amount that goes into their inventory account. However for companies that are manufacturing business, like Boeing, they will have three inventory accounts called, raw materials, work in process, and finished goods. Assigning cost into the inventory account is a little different for manufacturing companies. The cost assigned to good and materials on hand but not yet placed into production is reported as raw materials inventory...
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