For a company making cheese,cheese that has been made but is curing before being ready to sell would be included in which of the following:
A)Raw materials inventory.
B)Work in progress inventory.
C)Finished goods inventory.
D)All of the answers are acceptable.

Question

Quizplus · Accepted Answer

Cheese that has been made but is not yet ready to be sold would fall under the category of work in progress inventory. This is because it is still undergoing the process of curing, and is not yet a finished product. Once it is ready to be sold, it would then be considered a finished good and would be included in the finished goods inventory. Raw materials inventory would include items such as milk, rennet, and other ingredients needed to make the cheese.

For a Company Making Cheese,cheese That Has Been Made but Is