Which inventory category represents items that are partially completed and in production?

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

Answer: (B)

In manufacturing, inventory is tracked by how far production has progressed. Items that have begun converting raw materials into finished products but aren’t yet completed are work-in-process. This category captures the materials that have been used, the labor applied, and the overhead allocated as the product moves through production stages. Raw materials are not started yet, finished goods are fully completed and ready to sell, and MRO refers to maintenance, repair, and operating supplies not tied to specific product units. So the inventory category for partially completed items in production is work-in-process.