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

Question

Quizplus · Accepted Answer

Finished goods inventory refers to products that are fully manufactured and ready to be sold by the manufacturer. This is different from goods in process inventory, which are partially completed products still undergoing production, and raw materials inventory, which are the materials used to make the finished goods. Cost of goods sold refers to the cost of producing the goods that have been sold, while factory supplies are the materials used in the production process.

Products That Have Been Completed and Are Ready to Be