Direct materials inventory includes which of the following?
A)Products in their original form intended to be sold without changing their basic form
B)Direct materials in stock and awaiting use in the manufacturing process
C)Goods partially worked on but not yet fully completed
D)Goods fully completed by the firm but not yet sold

Question

Quizplus · Accepted Answer

Direct materials inventory refers to the goods and materials that are held by a company and are intended to be used in the manufacturing process. These are goods that have been purchased and are awaiting use in the production of finished products. Options A, C, and D are not direct materials inventory, as they refer to products that are already in their completed or partially completed form.

Direct Materials Inventory Includes Which of the Following