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Jeffrey Jimenez
on Oct 15, 2024

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Manufacturers usually have three inventories: raw materials,work in process,and finished goods.

Raw Materials

Raw materials are the basic, unprocessed materials used as inputs in the manufacturing process to produce finished goods.

Work in Process

Goods that are in production but have not yet completed the manufacturing process, considered a type of inventory on the balance sheet.

Finished Goods

A rephrased definition: Products that have completed the manufacturing process and are ready to be sold but are still in the company's inventory.

  • Understand the composition and management of manufacturer inventories: raw materials, work in process, and finished goods.
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Hailey BarlowOct 15, 2024
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