Match the inventory-related accounts to costs that may be included in inventories for retailers and manufacturers.
-Costs to purchase goods ready to sell.
A)Merchandise Inventory
B)Raw Materials
C)Work in Process
D)Finished Goods
E)Cost of Goods Sold

Question

Quizplus · Accepted Answer

Merchandise Inventory includes costs to purchase goods ready for sale, also known as finished goods inventory for manufacturers. Raw Materials, Work in Process, and Finished Goods are inventory accounts for manufacturers only. Cost of Goods Sold is a separate account used to record the cost of goods that have been sold, not the cost to purchase them.

Match the Inventory-Related Accounts to Costs That May Be Included