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Finished goods are
goods In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
that have completed the
manufacturing Manufacturing is the creation or Production (economics), production of goods with the help of equipment, Work (human activity), labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector ...
process but have not yet been sold or distributed to the end user.


Manufacturing

Manufacturing has three classes of
inventory Inventory (American English) or stock (British English) refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilisation. Stock management, Inventory management is a discipline primarily about spe ...
: #
Raw material A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods In economics Economics () is the social science that studies how people interact with value; in par ...
#
Work in process Work in process (WIP), work in progress (WIP), goods in process, or in-process inventory are a company's partially finished goods waiting for completion and eventual sale or the value of these items. These items are either just being fabricated or ...

Work in process
# Finished goods A good purchased as a "raw material" goes into the manufacture of a product. A good only partially completed during the manufacturing process is called "work in process". When the good is completed as to manufacturing but not yet sold or distributed to the end-user, it is called a "finished good". This is the last stage for the processing of goods. The goods are ready to be consumed or distributed. There is no processing required in term of the goods after this stage by the seller. Though there maybe instance that seller finished goods become buyer’s raw materials Finished goods is a relative term. In a
Supply chain management File:Supply and demand-stacked4.png , 400px, In an efficient supply chain agreements are aligned In commerce, supply chain management (SCM), the management of the flow of good (economics), goods and Service (economics), services, between busi ...
flow, the finished goods of a
supplierSupplier may refer to: *Manufacturing, Manufacturer, uses tools and labour to make things for sale *Process manufacturing, Processor (manufacturing), converts a product from one form to another *Packaging and labeling, Packager (manufacturing), encl ...
can constitute the raw material of a
buyer Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. Procurement generally involves making buying decisions under co ...
.


References

{{DEFAULTSORT:Finished Good Inventory
Manufacturing Manufacturing is the transformation of raw materials into finished goods for sale, or intermediate processes involving the production or finishing of semi-manufactures. {{Cat main, Manufacturing Production and manufacturing ...
Management accounting