MANAGEMENT

Detailed explanation-1: -There are three general categories of inventory, including raw materials (any supplies that are used to produce finished goods), work-in-progress (WIP), and finished goods or those that are ready for sale.

Detailed explanation-2: -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-3: -Inventory includes raw material, finished goods and work-in-progress and inventory is a part of working capital. Working capital is current assets-current liabilities. Current assets include stock as it can be converted in cash within a period of 1 year.

Detailed explanation-4: -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.