Use the information below to answer the following question(s).Toronto Industries Inc.had the following activities during the year:

-Manufacturing-sector companies report on the balance sheet
A)only merchandise inventory.
B)only finished goods inventory.
C)direct materials inventory, work-in-process inventory, and finished goods inventory accounts.
D)no inventory accounts.
E)only work in progress inventory.

Question

Use the information below to answer the following question(s).Toronto Industries Inc.had the following activities during the year:
 
-Manufacturing-sector companies report on the balance sheet
A)only merchandise inventory. 
B)only finished goods inventory. 
C)direct materials inventory, work-in-process inventory, and finished goods inventory accounts. 
D)no inventory accounts. 
E)only work in progress inventory.

Quizplus · Accepted Answer

Manufacturing-sector companies report on the balance sheet direct materials inventory, work-in-process inventory, and finished goods inventory accounts. This is because manufacturing companies usually need to carry raw materials, work-in-progress, and finished goods inventory to be able to produce and sell their products.

Use the Information Below to Answer the Following Question(s)