For Manufacturing Firms, the Cost of Completed Products Remains on the Balance

Multiple Choice

For manufacturing firms, the cost of completed products remains on the balance sheet as __________ assets until the firm sells the products; upon sale, the cost of the assets becomes a cost of goods sold expense.

A) Direct Materials Inventory
B) Work-in Progress Inventory
C) Finished Goods Inventory
D) Cost of Products Ready for Sale
E) none of the above