Goods undergoing the production process but not fully complete are called ________.
A) Merchandise Inventory
B) Raw Materials Inventory
C) Finished Goods Inventory
D) Work-in-Process Inventory

Question

Quizplus · Accepted Answer

Work-in-Process Inventory represents goods that are currently in the production process but are not yet complete. This inventory account includes the cost of raw materials, direct labor, and overhead that have been incurred up to the current stage of production. The other options, Merchandise Inventory and Finished Goods Inventory, refer to goods that are fully complete and ready for sale. Raw Materials Inventory refers to materials that have been procured but not yet used in the production process.

Goods Undergoing the Production Process but Not Fully Complete Are