Which of the following would be in the finished goods inventory of a company making cheese?
A) Milk and cream used to make the cheese
B) Cheese that has been made but is curing before being ready to sell
C) Cured cheese that is waiting to be shipped to customers
D) Cured cheese that has been sold to customers

Question

Quizplus · Accepted Answer

The finished goods inventory includes products that are ready to be sold or shipped to customers. Therefore, only cured cheese that is waiting to be shipped to customers (choice C) would be included in the finished goods inventory. Milk and cream (choice A) would be considered raw materials, and cheese that is still curing (choice B) would be considered work in progress or goods in process. Cured cheese that has already been sold (choice D) would not be in the company's inventory.

Which of the Following Would Be in the Finished Goods