CHAP 15 - Q12

12. Types of inventory Zhang Industries is a manufacturer of large commercial air conditioning units. Zhang has a lot of inventory on hand and is in the process of classifying its inventory. Zhang has a large stock of inventory that it purchased from a supplier who was discontinuing a product that Zhang uses to build its air conditioners. How should this inventory be classified? Raw materials Finished goods Work in process Which type of inventory is least liquid? O Work in process Raw materials Finished goods