On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead, which have entered into the manufacturing process but are associated with products that have not been finished, are reported as direct materials inventory.

Question

Quizplus · Accepted Answer

These costs are reported as work-in-process inventory, not direct materials inventory. Direct materials inventory only includes the cost of materials that have not yet entered the manufacturing process.

On the Balance Sheet for a Manufacturing Business, the Cost