Which of the following would be in the finished goods inventory of a company making ice cream?
A)Milk and cream used to make the ice cream.
B)Ice cream that has been made but is freezing to the level required for shipping.
C)Frozen ice cream that is waiting to be shipped to retailers.
D)Ice cream in process awaiting the addition of nuts.

Question

Quizplus · Accepted Answer

When completed,work in process inventory becomes finished goods inventory,which is ready for sale just like merchandise inventory.In this case,the finished goods inventory would include the frozen ice cream that is waiting to be shipped to retailers.

Which of the Following Would Be in the Finished Goods