For a manufacturing business, work-in-process inventories consist of inventories which have _____.
A) not yet entered the manufacturing process
B) entered the manufacturing process but not been completed
C) entered and completed manufacturing process but have not been sold
D) entered and completed manufacturing process and have been sold

Question

Quizplus · Accepted Answer

Work-in-process inventories consist of inventories that have entered the manufacturing process but have not been completed. Option A is incorrect because it refers to raw materials which have not yet entered the manufacturing process. Option C is incorrect because it refers to finished goods inventory that has not yet been sold. Option D is incorrect because it refers to cost of goods sold which is not a part of work-in-process inventory.

For a Manufacturing Business, Work-In-Process Inventories Consist of Inventories Which