Asked by Modasola Sholotan on May 31, 2024

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A retail firm would normally use an inventory account titled

A) Finished Goods Inventory
B) Merchandise Inventory
C) Goods in Process Inventory
D) Raw Materials Inventory

Finished Goods Inventory

Products that have been manufactured and are ready for sale, but have not yet been sold to customers.

Goods In Process Inventory

The value of materials, labor, and overhead costs for products that are partially completed in the manufacturing process.

  • Understand the types and purposes of various inventory accounts in retail, manufacturing, and other types of firms.
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Mounika UppalaJun 04, 2024
Final Answer :
B
Explanation :
A retail firm would most likely use a Merchandise Inventory account to track the cost of products purchased for resale. The other inventory accounts listed (Finished Goods, Goods in Process, and Raw Materials) are more commonly used in manufacturing or production environments.