The inventory accounts that show the cost of completed goods on hand and the costs applicable to production that is only partially completed are respectively
A) Work in Process Inventory and Raw Materials Inventory.
B) Finished Goods Inventory and Raw Materials Inventory.
C) Finished Goods Inventory and Work in Process Inventory.
D) Raw Materials Inventory and Work in Process Inventory.

Question

Quizplus · Accepted Answer

Finished Goods Inventory account shows the cost of completed goods on hand, while Work in Process Inventory account shows the costs applicable to production that is only partially completed. Therefore, the best choice is C, which lists these accounts in the correct order.

The Inventory Accounts That Show the Cost of Completed Goods