Which of the following applies to goods that are partially completed?
A) Materials inventory
B) Work in process inventory
C) Merchandise inventory
D) Finished goods inventory

Question

Quizplus · Accepted Answer

Goods that are partially completed are still in the production process and are considered work in process inventory, which includes materials and labor costs that have been added to the unfinished product. Option A (materials inventory) would only apply to raw materials that have not yet been used in production, Option C (merchandise inventory) would only apply to goods that have been completed and are ready for sale, and Option D (finished goods inventory) would only apply to goods that have been completed and are waiting to be sold.

Which of the Following Applies to Goods That Are Partially