An inventory, which consists of partially worked goods or work in progress is called

A. direct materials inventory

B. work in process inventory

C. finished goods inventory

D. indirect material inventory

Answer: Option B

Solution(By Examveda Team)

An inventory, which consists of partially worked goods or work in progress is called work in process inventory. Work-in-process is an asset, and so is aggregated into the inventory line item on the balance sheet (usually being the smallest of the three main inventory accounts, of which the others are raw materials and finished goods).