How should a company that manufactures automobiles classify its partially completed vehicles?
A) Supplies.
B) Raw materials inventory.
C) Finished goods inventory.
D) Cost of goods manufactured.
E) Work-in-process inventory.

Question

Quizplus · Accepted Answer

Partially completed vehicles in an automobile manufacturing company are classified as Work-in-process inventory. This category is used for items that are in the production process but are not yet complete, reflecting the costs of raw materials, labor, and overhead incurred up to that point.

How Should a Company That Manufactures Automobiles Classify Its Partially