Asked by Aidan Durham on Jul 25, 2024
Verified
Manufacturers usually classify inventory into all the following general categories except
A) work in process
B) finished goods
C) merchandise inventory
D) raw materials
Merchandise Inventory
Goods that a retailer or wholesaler purchases to sell to customers, held as an asset on the balance sheet.
Work in Process
Refers to partially finished goods that are still in the production process at the end of an accounting period.
- Comprehend the various classifications of inventory and their functions in both production and accounting contexts.
Verified Answer
CN
Chizoba NnakweJul 30, 2024
Final Answer :
C
Explanation :
Manufacturers typically classify their inventory into three general categories: raw materials, work in process, and finished goods. Merchandise inventory is a term typically used by retailers to describe the goods they plan to sell. Therefore, choice (C) merchandise inventory is not typically used by manufacturers to classify their inventory.
Learning Objectives
- Comprehend the various classifications of inventory and their functions in both production and accounting contexts.
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