Jones Co. is in a technology- intensive industry. Recently, one of its competitors introduced a new product with technology that might render obsolete some of Jones's inventory. The accounting staff wants to follow the appropriate authoritative literature in determining the accounting for this significant market event. Access the FASB Codification to conduct research using the Codification Research System to prepare responses to the following items. Provide Codification references for your responses.
(a) Identify the primary authoritative guidance for the accounting for inventories.
(b) What is the definition provide for inventory? List three types of goods that are classified as inventory. What characteristic will automatically exclude an item from being classified as inventory?
(c) Define "market" as used in the phrase "lower-of-cost-or-market."
(d) What guidance does the Codification provide concerning reporting inventories above cost?