A manufacturer has three classes of inventories: direct materials, work-in-process, and merchandise inventory.

Name: A manufacturer has three classes of inventories: direct materials, work-in-process, and merchandise inventory.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The three classes of inventories typically recognized in manufacturing are direct materials, work-in-process, and finished goods. Merchandise inventory refers to completed products purchased for resale by retailers and is not a category used in manufacturing.

A Manufacturer Has Three Classes of Inventories: Direct Materials, Work-In-Process