ENTREPRENEURSHIP

Detailed explanation-1: -Inventory is a current asset account found on the balance sheet, consisting of all raw materials, work-in-progress, and finished goods that a company has accumulated.

Detailed explanation-2: -Work in process (WIP) inventory refers to materials that are waiting to be assembled and sold. WIP inventory includes the cost of raw materials, labor, and overhead costs needed to manufacture a finished product.

Detailed explanation-3: -For your accounting, raw materials are considered an inventory asset, with a debit to raw materials and credit to accounts payable.

Detailed explanation-4: -Finished Goods: This is the inventory that’s ready to sell and to generate revenue for the company.