MANAGEMENT

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: -Inventory can be classified in three ways, including materials, work-in-progress, and finished goods.

Detailed explanation-3: -A company’s inventory typically involves goods in three stages of production: raw goods, in-progress goods, and finished goods that are ready for sale.

Detailed explanation-4: -These include three types of inventory accounts-raw materials, work‐in‐process, and finished goods-and several long‐term fixed asset accounts. A manufacturing company uses purchased raw materials and/or parts to produce a product for sale.