Which description matches work in process in inventory?

Which description matches work in process in inventory?

• A. Raw materials that are the source material for production.
• B. Work in process items that are partially completed.
• C. Finished goods that are completed and ready for sale.
• D. Merchandise held for resale.

Answer: (B)

Work in process inventory includes goods that have already begun manufacturing but are not yet finished. It captures the costs accumulated for items that are partly completed—direct materials issued, direct labor performed, and overhead applied as the product moves through production. These items are not raw materials (which are inputs not yet started in production) and not finished goods (which are complete and ready for sale). Merchandise held for resale refers to products purchased for resale without any manufacturing process. So the description that matches is the one describing items that are partially completed in production.

Work in process inventory includes goods that have already begun manufacturing but are not yet finished. It captures the costs accumulated for items that are partly completed—direct materials issued, direct labor performed, and overhead applied as the product moves through production. These items are not raw materials (which are inputs not yet started in production) and not finished goods (which are complete and ready for sale). Merchandise held for resale refers to products purchased for resale without any manufacturing process. So the description that matches is the one describing items that are partially completed in production.