Final answer:
The item that is not an inventory account for manufacturing companies is Cost of goods sold. Inventory accounts include raw materials, work-in-process, and finished goods, while COGS represents the cost associated with the sold stock.
Step-by-step explanation:
Cost of goods sold. This is not an inventory account for manufacturing companies. In the context of manufacturing companies, the term 'inventory' refers to the tangible property that these companies produce or purchase and intend to sell. This can be categorized into three main types: raw materials, work-in-process (WIP), and finished goods. Raw materials are the basic inputs or components that will be used in the production of goods.
Work-in-process is the inventory that is in the production process but is not yet completed. Finished goods are the completed products that are ready to be sold to customers. On the other hand, Cost of goods sold (COGS) is an income statement account that reflects the direct cost attributable to the goods that were sold during a particular period. Thus, COGS is not an inventory account but rather a measure of the expense related to inventory that has been sold.