Finished goods inventory would normally include
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 completed and sold.

Question

Quizplus · Accepted Answer

Finished goods inventory includes goods that have been fully completed but not yet sold, as opposed to goods that are still in the process of being manufactured or partially completed. Direct materials are still considered raw materials and are not yet part of finished goods inventory. Goods partially worked on or in their original form would also not be considered finished goods inventory. Goods that have already been sold would not be included in inventory at all.

Finished Goods Inventory Would Normally Include