Goods that are partially completed by a manufacturer are referred to as:
A) merchandise inventory
B) work in process inventory
C) finished goods inventory
D) materials inventory

Question

Quizplus · Accepted Answer

Goods that are partially completed by a manufacturer are referred to as work in process inventory. This inventory includes items that have been started but are not yet complete, such as parts that have been assembled but still need finishing touches before becoming finished goods inventory. Merchandise inventory refers to goods that are ready for sale, while finished goods inventory refers to products that have been fully manufactured and are ready to sell. Materials inventory consists of raw materials that have not yet been used in production.

Goods That Are Partially Completed by a Manufacturer Are Referred