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Work in Process Inventory
Inventory that includes all materials, labor, and overhead costs for products in the manufacturing process but not yet completed.
Direct Materials Inventory
The stock of raw materials that will be directly used in the production of goods, readily available for the manufacturing process.
Direct Labor Hours
The total hours worked by employees directly involved in the production of goods or services.
Factory Overhead
All indirect costs associated with the production process, excluding direct materials and direct labor, such as utilities, maintenance, and managerial salaries.
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