PlayStat is a company that manufactures toys for toddlers. To begin the production, the manufacturers purchase unprocessed plastic and metals. In the context of manufacturing inventories, the unprocessed plastic and metal used to produce toys are referred to as _____.
A) raw material inventories
B) component parts inventories
C) average aggregate inventories
D) work-in-process inventories

Question

Quizplus · Accepted Answer

Raw material inventories are the unprocessed materials used to create a finished product. In this context, the unprocessed plastic and metal used to make the toys are raw materials. The other options listed do not accurately describe the inventories in this manufacturing process.

PlayStat Is a Company That Manufactures Toys for Toddlers