What item in a manufacturing firm corresponds most closely to the merchandise inventory in a merchandising business?
A)materials inventory
B)cost of goods available for sale
C)cost of goods manufactured
D)finished goods inventory

Question

Quizplus · Accepted Answer

Finished goods inventory corresponds most closely to merchandise inventory in a merchandising business because both represent the inventory that is ready for sale to customers. Materials inventory represents the raw materials used to manufacture products, cost of goods available for sale represents the total cost of inventory available for sale (including materials, labor, and overhead), and cost of goods manufactured represents the total cost of producing finished goods during a period.

What Item in a Manufacturing Firm Corresponds Most Closely to the Merchandise