Which of the following applies to the raw materials used by a manufacturing company?
A) Materials inventory
B) Work in process inventory
C) Merchandise inventory
D) Finished goods inventory

Question

Quizplus · Accepted Answer

Raw materials used by a manufacturing company are classified as materials inventory. Work in process inventory refers to goods that are currently in the production process, merchandise inventory refers to finished goods that a retail company plans to sell, and finished goods inventory refers to completed goods that are awaiting sale or distribution.

Which of the Following Applies to the Raw Materials Used