Table of contents

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1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

5. Inventory

Inventory Errors

Financial Accounting

5. Inventory

Inventory Errors

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Multiple Choice

In the context of inventory accounting, completed units that have not yet been sold are classified as which of the following?

Work in process inventory

Raw materials inventory

Finished goods inventory

Cost of goods sold

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Verified step by step guidance

Understand the classification of inventory in accounting: Inventory is typically divided into three categories—raw materials, work in process, and finished goods.

Raw materials inventory refers to the basic materials that have not yet been used in production.

Work in process inventory includes goods that are partially completed but not yet ready for sale.

Finished goods inventory represents completed products that are ready for sale but have not yet been sold.

Cost of goods sold (COGS) is an expense account that reflects the cost of inventory sold during a specific period, and it is not classified as inventory.