Wal-Mart classifies its clothing held for sale as

Question

Quizplus · Accepted Answer

Wal-Mart's clothing that is held for sale is considered merchandise inventory, which is inventory that is purchased in a finished state and intended for resale. Option A is incorrect because finished goods inventory includes items that have been completed but not yet sold or delivered. Option B is incorrect because raw materials inventory is materials that are used in production but have not yet been processed into finished goods. Option C is incorrect because work in process inventory includes partially completed goods that are still being worked on in the production process.

Wal-Mart Classifies Its Clothing Held for Sale as