Answer
1. Direct materials inventory. This is inventory of materials directly involved in the manufacturing process. These direct materials are in stock and waiting to be used in the manufacturing process.
2. Work-in-process inventory. These are goods that have been partially worked; however the production process has not yet completed. They are also known as work in progress.
3. Finished goods inventory. These are unsold completely manufactured goods.
Work Step by Step
1. Direct materials inventory. This is inventory of materials directly involved in the manufacturing process. These direct materials are in stock and waiting to be used in the manufacturing process.
2. Work-in-process inventory. These are goods that have been partially worked; however the production process has not yet completed. They are also known as work in progress.
3. Finished goods inventory. These are unsold completely manufactured goods.
