MANAGEMENT

Detailed explanation-1: -Finished goods inventory is the third and final classification of inventory that is used for accounting purposes by manufacturing companies, the items that are sold to the customer. Manufactured products begin as raw materials and then move into the work-in-progress (WIP) stage as they are being produced.

Detailed explanation-2: -Finished goods are the final items that are ready for sale in the market.

Detailed explanation-3: -Finished goods inventory comprises all the items that make it through the entire production process and are considered finalized products. These products have been inspected and are ready to be sold.

Detailed explanation-4: -Subtract the cost of goods sold from the total goods available for sale. This will give you the total value of finished goods at the end of the year.

Detailed explanation-5: -Finished goods are the final products obtained after applying the manufacturing processes to the raw materials and the semi-finished goods discussed above in the article. They are saleable, and their sale contributes fully to the revenue from the company’s core operations.