The three primary inventory accounts in a manufacturing company are
A)Merchandise Inventory,Supplies Inventory,and Finished Goods Inventory.
B)Merchandise Inventory,Work in Process Inventory,and Finished Goods Inventory.
C)Supplies Inventory,Work in Process Inventory,and Finished Goods Inventory.
D)Raw Material Inventory,Work in Process Inventory,and Finished Goods Inventory.

Question

Quizplus · Accepted Answer

In a manufacturing company, the three primary inventory accounts are Raw Material Inventory (materials used to make the product), Work in Process Inventory (partially completed products), and Finished Goods Inventory (completed products ready for sale). Therefore, the best choice is D. Option A is incorrect because it includes Merchandise Inventory, which is used in a retail or wholesale business. Option B is incorrect also because it includes Merchandise Inventory, which is irrelevant in a manufacturing company. Option C is incorrect because it includes Supplies Inventory, which could be included in a manufacturing company but it is not one of the three primary inventory accounts.

The Three Primary Inventory Accounts in a Manufacturing Company Are