Which of the following applies to goods that are purchased from a producer and sold by a merchandising company?
A) Materials inventory
B) Work in process inventory
C) Merchandise inventory
D) Finished goods inventory

Question

Quizplus · Accepted Answer

Merchandise inventory refers to goods that are purchased from a producer and sold by a merchandising company. Materials inventory refers to raw materials used in manufacturing, work in process inventory refers to partially finished goods in the manufacturing process, and finished goods inventory refers to completed products manufactured by a company.

Which of the Following Applies to Goods That Are Purchased