Products that have been completed and are ready to be sold by the manufacturer are called:
A) Cost of goods sold.
B) Finished goods inventory.
C) Work in process inventory.
D) Factory supplies.
E) Raw materials inventory.

Question

Quizplus · Accepted Answer

Finished goods inventory refers to products that have been completed and are ready to be sold by the manufacturer. Option A, cost of goods sold, refers to the cost of producing the finished goods that have been sold. Options C, work in process inventory, and E, raw materials inventory, refer to products and materials that are still in the manufacturing process and have not yet been completed. Option D, factory supplies, refers to the materials and supplies needed to run the manufacturing process, but do not refer to completed products.

Products That Have Been Completed and Are Ready to Be