Question

A batch of Raisin Bran that has been made at Kellogg's, but not yet packaged in its final cereal box would be an example of what type of inventory?
a. Finished Goods
b. Raw Material
c. Work-in-process
d. Maintenance, repair and operating supplies (MRO)

Answer 1

Answer:

c. Work-in-process

Explanation:

Work in progress refers to goods that are partially complete. It is a term in supply chain management used to describe products that have not gone through the entire production process. These goods are most likely to be found in the production area, or the production line.

The cost of work in progress will include labor, raw materials, and overhead expenses incurred for products that are in various stages of production. Work-in-progress is accounted for as current assets. It later progresses to finished goods and eventually to cost of sales.