Which of the following is normally included in direct materials inventory?
A)Direct materials in stock and awaiting use in the manufacturing process.
B)Goods partially worked on but not yet fully completed.
C)Goods fully completed but not yet sold.
D)Products in their original form intended to be sold without changing their basic form.
E)Goods and products that have been completed and sold.

Question

Quizplus · Accepted Answer

Direct materials inventory includes materials that have been purchased and are in stock, waiting to be used in the manufacturing process. Goods that have been partially worked on (B), fully completed but not yet sold (C), and products in their original form intended for sale (D) are not considered part of direct materials inventory. Items that have been completed and sold (E) would be considered finished goods inventory.

Which of the Following Is Normally Included in Direct Materials