The inventory account a manufacturer uses to record the cost of products completed and available for sale is called
A) Raw materials inventory
B) Merchandise inventory
C) Finished goods inventory
D) Work in process inventory

Question

Quizplus · Accepted Answer

The finished goods inventory account is used by a manufacturer to record the cost of products that have been completed and are ready for sale. This account represents the value of the manufacturer's inventory that is available to be sold to customers. Choices A, B, and D represent different types of inventory accounts that a manufacturer might use to record costs during different stages of the manufacturing process.

The Inventory Account a Manufacturer Uses to Record the Cost