Will the raw material inventory affect this years income


At a recent company meeting, an employee remarks: "We were working so hard to get the income for our bonus this year. Then they got all that raw material inventory in-and even paid for it. We don't need it yet. Why didn't they wait until January?" Will the raw material inventory affect this year's income? Does it matter whether it was paid for this year or in January? Explain. Please list the components of cost of good manafactured.

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Accounting Basics: Will the raw material inventory affect this years income
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