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

Inventory Errors

Financial Accounting

5. Inventory

Inventory Errors

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Multiple Choice

Completed units that have not yet been sold are found in which of the following accounts?

Cost of Goods Sold

Work in Process Inventory

Finished Goods Inventory

Raw Materials Inventory

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Verified step by step guidance

Understand the concept of inventory accounts: In manufacturing, inventory is categorized into four main accounts—Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold. Each account represents a different stage in the production and sales process.

Define Finished Goods Inventory: This account represents completed products that are ready for sale but have not yet been sold. These units are no longer in production and are stored as inventory until they are sold to customers.

Differentiate between the other accounts: Raw Materials Inventory includes unprocessed materials used in production. Work in Process Inventory includes partially completed products still undergoing production. Cost of Goods Sold represents the expense of goods that have been sold during a specific period.

Identify the correct account for completed units not yet sold: Since these units are fully completed and ready for sale but not yet sold, they belong in the Finished Goods Inventory account.

Conclude the reasoning: Completed units not yet sold are classified under Finished Goods Inventory because they are no longer in production and have not yet been transferred to Cost of Goods Sold.