Define Work-in-process inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Define Work-in-process inventory.
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Step 1
Definition:
Inventory refers to the raw materials, work-in-process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date. There are three types of inventories a manufacturing business reports on its balance sheet. They are as follows:
- Material inventory.
- Work in process inventory.
- Finished goods inventory.
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