Inventory items on an assembly line in various stages of production are classified as
A) Finished goods.
B) Work in process.
C) Raw materials.
D) Merchandise inventory.

Question

Quizplus · Accepted Answer

Items on an assembly line in various stages of production are classified as work in process, since they have not yet become finished goods. Raw materials are the inputs used to create the work in process, while merchandise inventory refers to already finished goods that are held for sale.

Inventory Items on an Assembly Line in Various Stages of Production