Items not yet placed into production are considered to be
A) raw materials.
B) work in process.
C) finished goods.
D) merchandise inventory.

Question

Quizplus · Accepted Answer

Items not yet placed into production are considered to be raw materials, as they still need to undergo a manufacturing process to become finished goods or work in process. Finished goods are products that have already completed manufacturing and are ready for sale, while work in process refers to products that are currently undergoing manufacturing but are not yet finished. Merchandise inventory typically refers to finished goods that have already been purchased and are ready for sale.

Items Not Yet Placed into Production Are Considered to Be