An auto manufacturer would classify vehicles in various stages of production as

Question

Quizplus · Accepted Answer

Vehicles in various stages of production would be considered as work in process inventory. They are not considered finished goods until they are completed and ready for sale. They also cannot be classified as raw materials, as they have already undergone some levels of production. Merchandise inventory refers to completed goods that are available for sale.

An Auto Manufacturer Would Classify Vehicles in Various Stages of Production