A manufacturing business reports just two types of inventory on its balance sheet: work in process inventory and finished goods inventory.

Work in Process

Goods in various stages of completion throughout the plant, not including raw materials or finished products.

Finished Goods Inventory

The direct materials costs, direct labor costs, and factory overhead costs of finished products that have not been sold.

Manufacturing Business

A type of business that uses components, parts, or raw materials to make a finished good or product.