ECONOMICS

Detailed explanation-1: -Inventories may be classified as raw material, work in progress and finished goods. Goods which is partly finished is considered as goods in progress or work in progress.

Detailed explanation-2: -The four types of inventory most commonly used are Raw Materials, Work-In-Process (WIP), Finished Goods, and Maintenance, Repair, and Overhaul (MRO). You can practice better inventory control and smarter inventory management when you know the type of inventory you have.

Detailed explanation-3: -There are four main types of inventory: raw materials/components, WIP, finished goods and MRO.

Detailed explanation-4: -Inventory is the raw materials used to produce goods as well as the goods that are available for sale. It is classified as a current asset on a company’s balance sheet. The three types of inventory include raw materials, work-in-progress, and finished goods.

Detailed explanation-5: -A piece of inventory becomes labeled as work-in-progress when raw material combines with human labor. When the product is finalized, it switches from WIP to being categorized as a finished product. Finally, when the product is sold, it moves from a form of inventor to cost of goods sold (COGS) on the balance sheet.