Which of the Following Functions of Inventory Is Most Likely

question 14

Multiple Choice

Which of the following functions of inventory is most likely to be included in a manufacturer's finished goods?

• A) Rework
• B) Work in process
• C) Anticipation
• D) Maintenance, repair, and operations supplies (MRO)

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Definitions:

Ending Finished Goods

The inventory of goods manufactured and ready for sale at the end of an accounting period.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including the costs of materials, labor, and manufacturing overhead.

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a product and are an essential part of the finished product.

Direct Labor

The workforce directly involved in producing goods or delivering services, whose wages are considered part of manufacturing costs.