Which of the following applies to goods that are produced by a manufacturing company and ready to sell?
A) Materials inventory
B) Work in process inventory
C) Merchandise inventory
D) Finished goods inventory

Question

Quizplus · Accepted Answer

Finished goods inventory refers to goods that have completed the manufacturing process, have been inspected and are now ready for sale to customers. Choice A) Materials inventory refers to raw materials that have not yet been used in production. Choice B) Work in process inventory refers to goods that are still in the manufacturing process and have not yet been completed. Choice C) Merchandise inventory refers to goods that have been purchased by a retail company for resale and have not necessarily been manufactured by that company.

Which of the Following Applies to Goods That Are Produced