Question

35: A production company's balance sheet
reveals:
3608805214
The raw materials inventory, the work in
process inventory, and the finished goods
inventory
Asingle inventory figure-the amount of the
uc
finished goods inventory.
ITUDE
The finished goods inventory and the cost of
goods manufactured.
The cost of goods manufactured rather than
inventory figures​

Answer 1

Raw materials and works in progress (WIP) are distinct categories in financial accounting for business inventory. Each applies to a different stage in the production process. The first stage in the production process involves gathering raw materials, or basics. When labor or other capital equipment is mixed with raw materials, raw materials are transitioned into works in progress. Ultimately, finished goods are produced and sold for revenue.