RSA Cycles,Inc.is a leading bicycle manufacturer.The company manufactures bicycles that cater to different market segments.Which of the following items stored in RSA's warehouse is considered finished goods inventory?
A) metal parts obtained from small suppliers
B) tires that are procured from a vendor
C) bicycles that are to be shipped to retailers
D) tools that workers use in the production process

Question

Quizplus · Accepted Answer

Finished goods inventory refers to the final products that are ready to be sold to customers. In this scenario, bicycles that are ready to be shipped to retailers are considered finished goods inventory. Metal parts, tires, and tools are all considered raw materials or supplies inventory, as they are not yet the final product.