Question

Which of the following applies to goods that are purchased from a producer and sold by a

merchandising company?
A) Finished goods inventory
B) Merchandise inventory
C) Materials inventory
D) Work in process inventory

Answer 1

The correct answer is B) Merchandise inventory. Merchandise inventory refers to goods that are purchased from a producer and then sold by a merchandising company.

Step-by-step explanation:

The correct answer is B) Merchandise inventory.

Merchandise inventory refers to goods that are purchased from a producer and then sold by a merchandising company.

These are typically finished goods that are ready for sale to consumers.

For example, if a clothing manufacturer sells its products to a clothing retailer, the clothing retailer will consider the clothing items as merchandise inventory.