Final answer:
No, manufacturing companies have more than two inventory accounts. While Work in Process and Finished Goods are two common inventory accounts, there is typically a third inventory account called Raw Materials.
Step-by-step explanation:
No, manufacturing companies have more than two inventory accounts. While Work in Process and Finished Goods are two common inventory accounts, there is typically a third inventory account called Raw Materials. This account tracks the materials and components that are used in the production process but have not yet been incorporated into finished products. Raw Materials inventory is an important part of the manufacturing process as it ensures that materials are available for production when needed.