A manufacturing company produces goods and usually sells them to merchandising firms. Although the products they produce may differ, manufacturers normally have three inventory accounts in their financial statements: raw materials, work in process, and finished goods.
Raw Materials Inventory reports the cost of goods and
materials on hand which will be used in production.
Work in Process Inventory reports the cost of goods, materials and other components of manufacturing process used for the inventory which are still in production process, in other words unfinished at the time financial statements are prepared.
Finished Goods Inventory reports the cost of goods, materials and other components of manufacturing process used for the inventory produced and available for sale. A is the right answer