An auto manufacturer would classify vehicles in various stages of production as
A) finished goods.
B) merchandise inventory.
C) raw materials.
D) work in process.

Question

Quizplus · Accepted Answer

Vehicles in various stages of production would be classified as work in process because they are partially completed goods that are still in the production process. Finished goods would be vehicles that are complete and ready for sale, while raw materials would be the materials used to make the vehicles. Merchandise inventory would typically apply to businesses that sell goods rather than producing them.

An Auto Manufacturer Would Classify Vehicles in Various Stages of Production