Which of the following statements about an auto manufacturer's inventory is not correct?
A)Tires,batteries,glass,paint,headlamp bulbs,and electric wiring would be included in raw materials inventory.
B)Incomplete cars that are still being processed would be included in work in process inventory.
C)Finished cars ready to be shipped to dealers would be included in finished goods inventory.
D)Cars that have been sold to dealers would be included in finished goods inventory.

Question

Quizplus · Accepted Answer

The generic term inventory means goods that are held for sale in the normal course of business or are used to produce other goods for sale.The finished goods inventory,which is ready for sale,would not include cars that have been sold.

Which of the Following Statements About an Auto Manufacturer's Inventory