Multiple Choice
In a manufacturing company, what is Work in Process (WIP) inventory generally described as?
5. Inventory
Merchandising Company vs. Manufacturing Company
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In a manufacturing company, inventory that has been started but is not yet complete is known as what type of inventory?
A
Work in process inventory
B
Raw materials inventory
C
Merchandise inventory
D
Finished goods inventory
Verified step by step guidance1
Understand the different types of inventory in a manufacturing company: Raw materials inventory, Work in process inventory, and Finished goods inventory.
Raw materials inventory refers to the basic materials and components that have not yet entered the production process.
Work in process inventory includes items that have begun the production process but are not yet completed.
Finished goods inventory consists of completed products that are ready for sale to customers.
Since the question asks about inventory that has been started but is not yet complete, identify this as Work in process inventory.
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