The account a manufacturer uses to record the cost of products completed and available for sale is called
A)Raw Materials Inventory.
B)Work in Process Inventory.
C)Finished Goods Inventory.
D)Merchandise Inventory.

Question

Quizplus · Accepted Answer

Finished Goods Inventory account is used to record the cost of products that are completed and available for sale. Raw Materials Inventory is used to record the cost of materials that have not yet been used in production, and Work in Process Inventory is used to record the cost of partially completed products. Merchandise Inventory is used by retailers to record the cost of goods purchased for resale.

The Account a Manufacturer Uses to Record the Cost of Products