ECONOMICS

Detailed explanation-1: -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.

Detailed explanation-2: -Goods you’re making (manufacturing) Manufacturers deal with three types of stock. They are raw materials (which are waiting to be worked on), work-in-progress (which are being worked on), and finished goods (which are ready for shipping).

Detailed explanation-3: -A cost that is not included in the account of merchandise inventory is the cost of damaged inventory which cannot be provided to the customers for sales.

Detailed explanation-4: -Answer and Explanation: A. Manufacturing inventory is not a type of inventory held by a manufacturer. Manufacturers maintain raw materials, work-in-process, and finished goods inventories and account for how the inventories are modified by direct labor and materials in the process.