Match the inventory-related accounts to costs that may be included in inventories for retailers and manufacturers.
-Cost of ingredients used to make a product.

Question

Quizplus · Accepted Answer

Raw materials are the costs of ingredients used to make a product, which are included in inventories for both retailers and manufacturers. Merchandise inventory is the cost of goods purchased for resale by retailers, while work-in-process and finished goods are specific to manufacturing inventory. Cost of goods sold is the cost of goods sold by retailers or manufacturers and is expensed when the goods are sold.

Match the Inventory-Related Accounts to Costs That May Be Included