Question

Manufacturing companies normally have three types of inventory: Select one: a. Economy, standard, and deluxe. b. Direct materials, direct labor, and manufacturing overhead. c. Raw materials, work in process, and finished goods. d. Work in process, finished goods, and returned merchandise.

Answer 1

Answer:

C. Raw materials, work in process, and finished goods.

Explanation:

Inventories are materials which have monetary value, and are assets to a company. An inventory can in the form of RAW MATERIALS (inventories which has not be used or converted in the production process), A WORK IN PROGRESS (materials which are within the production or conversion process, they have been partially transformed but not yet completed) and the FINISHED PRODUCTS ALSO CALLED FINISHED GOODS(materials which has undergone complete Transformation and are ready to be sold to the market).