Question

What is the difference between raw material in-process and finished-goods inventory classifications

Answer 1

Answer:

A manufacturing company handles two different types of inventory -- raw materials and finished goods. The primary difference is that raw materials inventory is used in the production of goods and finished goods inventory is what the company produces and eventually sells to a product reseller.

Answer 2

raw materials- these are the materials that are used by a factory to produce finished products with the help of mechanical power and physical labour, they are also known as inputs of an industry.

finished products- these are the materials that produced by processing the raw materials with the help of mechanical power and physical labour, they are also known as outputs of an industry.

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