Table of contents

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

Physical Inventory Count, Ownership of Goods, and Consigned Goods

Financial Accounting

5. Inventory

Physical Inventory Count, Ownership of Goods, and Consigned Goods

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Multiple Choice

Partially complete units are known as which type of inventory?

Finished goods inventory

Work in process inventory

Raw materials inventory

Consigned goods inventory

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Verified step by step guidance

Understand the concept of inventory types: In financial accounting, inventory is categorized into different types based on its stage in the production process. These include raw materials inventory, work in process inventory, finished goods inventory, and consigned goods inventory.

Define 'Work in Process Inventory': This refers to partially completed units that are still undergoing production. These units are not yet finished goods but have moved beyond the raw materials stage.

Compare with other inventory types: Raw materials inventory consists of unprocessed materials used in production. Finished goods inventory includes completed products ready for sale. Consigned goods inventory refers to goods held by a third party for sale but still owned by the original company.

Identify the correct match: Since the question specifies 'partially complete units,' this aligns with the definition of work in process inventory, as these units are still in production and not yet finished.

Conclude the reasoning: Based on the definitions and comparisons, the correct answer is 'Work in Process Inventory,' as it specifically refers to partially completed units in the production process.