Asked by Samira Saghafi on Jul 12, 2024
Verified
A manufacturing company typically has how many inventory accounts?
A) 1
B) 2
C) 3
D) 4
Manufacturing Company
A business that produces goods through the processing of raw materials into finished products on a large scale.
Inventory Accounts
Refers to the ledger accounts that hold records of a company's raw materials, work-in-progress, and finished goods.
- Gain an understanding of the different categories and functions of inventory accounts within retail, manufacturing, and additional firm types.
Verified Answer
JN
Ja Nay GreenJul 17, 2024
Final Answer :
C
Explanation :
A manufacturing company typically has three inventory accounts: Raw Materials, Work-in-Process, and Finished Goods. These accounts are used to track the cost of materials, the cost of goods in production, and the cost of completed products ready for sale, respectively.
Learning Objectives
- Gain an understanding of the different categories and functions of inventory accounts within retail, manufacturing, and additional firm types.
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