A manufacturing business reports three types of inventory on its balance sheet: direct materials inventory,work in process inventory and finished goods inventory.

Question

Quizplus · Accepted Answer

This statement is true as manufacturing businesses often have these three types of inventory that are reported on their balance sheets. Direct materials inventory refers to the raw materials that are needed to produce finished goods, work in process inventory refers to partially completed goods that are in the production process and finished goods inventory refers to completed goods that are ready for sale.

A Manufacturing Business Reports Three Types of Inventory on Its