Inventory items on an assembly line in various stages of production are classified as
A) finished goods.
B) work in process.
C) raw materials.
D) merchandise inventory.

Question

Quizplus · Accepted Answer

Inventory items on an assembly line in various stages of production are not yet finished goods, and they are also not raw materials. They are classified as "work in process," as they are partially completed products that are still in the process of being manufactured. Merchandise inventory refers to fully completed products that are ready to be sold.

Inventory Items on an Assembly Line in Various Stages of Production