For a manufacturer, the three inventory accounts on the balance sheet are
A)Materials, Finished Goods, and Cost of Goods Sold.
B)Materials, Overhead, and Cost of Goods Sold.
C)Materials, Direct Labor, and Overhead.
D)Materials, Work-in-Process, and Finished Goods.

Question

Quizplus · Accepted Answer

The three inventory accounts on the balance sheet for a manufacturer are Materials, Work-in-Process, and Finished Goods. Materials represent the raw materials that are purchased and waiting to be used in production. Work-in-Process represents partially completed goods that are currently in the production process. Finished Goods represent completed goods that are ready to be sold.

For a Manufacturer, the Three Inventory Accounts on the Balance