Which inventory category includes items that are being transformed into finished products but are not yet complete?

• A. Raw Materials
• B. Work-in-Process
• C. MRO
• D. Finished Goods

Answer: (B)

In manufacturing, inventory that has started the transformation but isn't finished yet is called work-in-process. This category covers items that are in the middle of production—they’re being worked on and may be partially assembled, with some materials already converted into components but still requiring additional steps before completion. Raw materials are the unprocessed inputs before production begins, MRO are maintenance and operating supplies used in the process, and finished goods are items that have completed all production steps and are ready for sale. Work-in-process sits between raw materials and finished goods and includes the costs incurred up to the current point, often tied to the current stage of completion.