The ending inventory of a merchandising company corresponds most closely to which of the following amounts of a manufacturer?

Question

Quizplus · Accepted Answer

A merchandising company purchases and sells finished goods, so its ending inventory of finished goods is most closely comparable to the ending inventory of a manufacturer. Option B refers to the cost of finished goods manufactured, which is not applicable to a merchandising company. Option C refers to the ending inventory of work in process, which is not applicable to a merchandising company. Option D refers to total manufacturing costs incurred during the period, which is not applicable to a merchandising company as it does not manufacture anything.

The Ending Inventory of a Merchandising Company Corresponds Most Closely