ECONOMICS

Detailed explanation-1: -Inventory is the accounting of items, component parts and raw materials that a company either uses in production or sells.

Detailed explanation-2: -Raw materials inventory refers to the materials that are used to create a business’s finished goods. While raw material inventory is not sold to end customers as-is, a company keeps raw materials in stock so that they can turn them into work-in-process (or WIP) inventory or finished goods inventory.

Detailed explanation-3: -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-4: -Raw materials are transformed by physical and chemicals processes into the various types of materials that are used for manufacturing. they are prepared so that they are ready to use for making many different products called manufactured goods. Technical materials are common materials used to make manufactured goods.

Detailed explanation-5: -Examples of raw materials include steel, oil, corn, grain, gasoline, lumber, forest resources, plastic, natural gas, coal, and minerals. Raw materials can be direct raw materials, which are directly used in the manufacturing process, such as wood for a chair.