Materials a company acquires to use in making products are called:
A)Cost of goods sold.
B)Raw materials inventory.
C)Finished goods inventory.
D)Work in process inventory.
E)Conversion costs.

Question

Quizplus · Accepted Answer

Raw materials inventory refers to the materials that a company has acquired to use in making products but have not yet been used in production. Cost of goods sold refers to the cost of the materials and other costs incurred in producing finished goods. Finished goods inventory refers to the completed products that are ready to be sold. Work in process inventory refers to partially completed products that are currently in production. Conversion costs refer to the costs of converting raw materials into finished products.

Materials a Company Acquires to Use in Making Products Are