Inventory that is not used to produce finished goods should be accounted for as scrap inventory.

Question

Quizplus · Accepted Answer

Inventory that is not used to produce finished goods should be accounted for as raw materials inventory, work-in-progress inventory, or finished goods inventory, depending on the stage of production. Scrap inventory is inventory that results from unusable or defective materials during the manufacturing process.

Inventory That Is Not Used to Produce Finished Goods Should