ECONOMICS

Detailed explanation-1: -Goods-in-process is part of an inventory account on the balance sheet of a manufacturing company. It relates to partially completed goods that are somewhere in the manufacturing process and not yet ready for sale. Goods-in-process is also known as “work-in-process” or “work-in-progress."

Detailed explanation-2: -2) Work-in-progress (WIP) inventory These are unfinished items or components currently in-production, but not yet ready for sale.

Detailed explanation-3: -Inventory of final goods that are not yet sold is called finished goods inventory. Finished goods inventory refers to the number of manufactured products in stock that are available for customers to purchase.

Detailed explanation-4: -There are four main types of inventory: raw materials/components, WIP, finished goods and MRO.

Detailed explanation-5: -Raw materials, semi-finished goods, and finished goods are the three main categories of inventory that are accounted for in a company’s financial accounts.