Manufacturer Balance Sheet Flashcards
1
Q
What are the three main categories of inventory?
A
Raw Materials, Work in Process, Finished Goods
These categories represent the different stages of inventory in manufacturing and production processes.
2
Q
What is classified as Raw Materials?
A
The basic materials that are used in the production of goods
Raw materials are the inputs that are transformed into finished products.
3
Q
What does Work in Process inventory refer to?
A
Items that are in the production process but are not yet completed
This includes all costs incurred for products that are not finished.
4
Q
What are Finished Goods?
A
Products that have completed the manufacturing process and are ready for sale
Finished goods are the final output of the production process.
