Which of the Following Applies to Goods That Are Produced

question 7

Multiple Choice

Which of the following applies to goods that are produced by a manufacturing company and ready to sell?

• A) Materials inventory
• B) Work in process inventory
• C) Merchandise inventory
• D) Finished goods inventory

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Definitions:

Raw Materials Cost

The total expense incurred for materials that are used in the manufacturing process to produce goods.

Direct Labor Wage Rate

The amount of money paid to workers for each hour of labor.

Raw Materials Inventory

Stocks of unprocessed materials that are used in the manufacturing process to create finished goods.

Raw Material Needs

The quantity of raw materials required to meet production schedules and maintain inventory levels.