Which types of inventories does a manufacturing business report on the balance sheet?
A) finished goods inventory and work in process inventory only
B) direct materials inventory and work in process inventory only
C) direct materials inventory, work in process inventory, and finished goods inventory
D) direct materials inventory and finished goods inventory only

Question

Quizplus · Accepted Answer

A manufacturing business reports on direct materials inventory, work in process inventory, and finished goods inventory on its balance sheet. Direct materials inventory refers to the raw materials that the business has purchased but not yet used in production. Work in process inventory includes partially completed products that are still being manufactured. Finished goods inventory includes products that are completed and ready for sale.

Which Types of Inventories Does a Manufacturing Business Report on the Balance