50 IAC 4.2-5-1 "Inventory" defined

Sec. 1. (a) As used in this article, "inventory" means the aggregate of those elements of cost incurred to acquire or produce items of personal property that are: (1) held for sale in the ordinary course of business; (2) currently in the process of production for subsequent sale; (3) ultimately to be consumed in the production of the goods or services to be available for sale; or (4) utilized in marketing or distribution activities. (b) The term "inventory" embraces the following: (1) Goods or commodities awaiting sale which include, but are not limited to, the following: (A) The merchandise of a retail or wholesale concern. (B) The finished goods of a manufacturer. (C) Commodities from farms, mines, and quarries. (D) Goods that are used or trade-in merchandise and byproducts of a manufacturer. (2) Goods or commodities that are in the course of production at the Indiana location, that is, items needing further processing to be considered finished or ready for shipment. (3) Goods that will be consumed or used in either the Indiana manufacturing process or in any other manner by the taxpayer, directly or indirectly. This category would include, but not be limited to, raw materials, supplies, repair parts, expendable tools, and samples.