Manufacturing-sector companies report:
A)only merchandise inventory
B)only finished goods inventory
C)direct materials inventory, work-in-process inventory, and finished goods inventory accounts
D)no inventory accounts

Question

Quizplus · Accepted Answer

Manufacturing-sector companies typically maintain inventory of direct materials (raw materials), work-in-process inventory (partially completed products), and finished goods inventory (completed products ready for sale). Therefore, they report all three categories of inventory accounts.

Manufacturing-Sector Companies Report