A hardware retailer typically maintains the following inventory account(s):
A) Merchandise Inventory.
B) Raw Materials and Work in Process only.
C) Raw Materials, Work in Process, and Finished Goods.
D) Work in Process and Merchandise Inventory.

Question

Quizplus · Accepted Answer

A hardware retailer typically maintains only Merchandise Inventory account as they sell finished goods to their customers without any manufacturing or production process involved. Raw materials and work in process inventories are more relevant to industries involved in manufacturing or production of goods.

A Hardware Retailer Typically Maintains the Following Inventory Account(s)