A manufacturing company typically has the following inventory accounts:
A)Accounts Receivable, purchases and freight-in.
B)Beginning inventory and ending inventory
C)Raw materials, work in process and finished goods.
D)None of these

Question

Quizplus · Accepted Answer

A manufacturing company typically has separate inventory accounts for raw materials, work in process, and finished goods. Accounts Receivable and purchases are typically related to sales, while freight-in is a cost of acquiring inventory and would be included in the inventory accounts. Beginning and ending inventory are not separate accounts, but rather the values of the raw materials, work in process, and finished goods at the start and end of the accounting period.

A Manufacturing Company Typically Has the Following Inventory Accounts