For manufacturing firms, the balance sheet reports the costs of incomplete items as
A)Raw Materials Inventory.
B)Work-in-Process Inventory.
C)Finished Goods Inventory.
D)Cost of goods ready for sale.
E)none of the above.

Question

Quizplus · Accepted Answer

The balance sheet of a manufacturing firm reports the costs of incomplete items as Work-in-Process (WIP) Inventory. This is because WIP inventory comprises of partially completed goods that are in the production process but are yet to be completed. The costs included in WIP inventory include direct materials, direct labor, and manufacturing overheads.

For Manufacturing Firms, the Balance Sheet Reports the Costs of Incomplete