What does the Unapplied inventory report contain?

The Unapplied inventory report provides crucial information about inventory transactions that occur prior to a physical count of the inventory. This report is significant as it highlights items that have been received or recorded but not yet accounted for in the official inventory counts. This is essential for managers to understand discrepancies or to identify issues in inventory management processes before reconciling inventory records against physical counts.

By focusing on transactions that have not been applied or acknowledged, this report helps in making informed decisions about restocking, identifying shrinkage, and ensuring that the inventory system reflects accurate data. The other options do not accurately represent the primary focus of the Unapplied inventory report, thus underlining the importance of understanding unrecorded or mismanaged stock entries.