In the manufacturing firm, inventories consist of:
A) raw materials, cost of goods manufactured during the period and finished goods.
B) raw materials, work in process and finished goods.
C) raw materials, finished goods and cost of goods sold.
D) cost of goods manufactured and cost of goods sold.

Question

Quizplus · Accepted Answer

In a manufacturing firm, inventories consist of raw materials, work in process (which includes the cost of goods manufactured during the period), and finished goods. Therefore, option B is the correct answer. Option A is incorrect because it does not mention work in process. Option C is incorrect because it does not mention work in process, only finished goods and cost of goods sold. Option D is incorrect because it does not include raw materials or finished goods.

In the Manufacturing Firm, Inventories Consist Of