Toysoft Corp., a company that makes plastic toys for children, recently received an order for 250 toy cars. For this order, the company has an inventory of 100 kilograms of plastic, 75 kilograms of fiberglass, 500 toy wheels, 1,000 light-emitting diode (LED) bulbs, 135 toy cars in various stages of manufacturing, and 50 completed toy cars. In this scenario, which of the following components of the inventory can be categorized under work-in-process inventory?
A) The final order of 250 toy cars
B) The 135 toy cars in various stages of manufacturing
C) The 50 completed toy cars
D) The 500 toy wheels

Question

Quizplus · Accepted Answer

Work-in-process inventory includes items that are in various stages of production but are not yet completed. Therefore, the 135 toy cars that are in various stages of manufacturing can be categorized under work-in-process inventory. The final order of 250 toy cars and the 50 completed toy cars are finished goods inventory, while the 500 toy wheels are raw materials inventory.