Opening Inventory in Manufacturing Concern

Opening inventory is the stock of goods that a manufacturing concern has at the beginning of an accounting period. It consists of raw materials, work-in-progress, and finished goods.

Raw Materials

Raw materials are the basic materials that are used in the production of goods. These materials can be in the form of wood, steel, plastic, or any other material that is used in the manufacturing process. The opening inventory of raw materials includes all the raw materials that the manufacturing concern has in its stock at the beginning of the accounting period.

Work-in-Progress

Work-in-progress refers to the goods that are in the process of being manufactured but are not yet complete. These goods are partially finished and require further processing to become complete. The opening inventory of work-in-progress includes all the goods that are partially completed at the beginning of the accounting period.

Finished Goods

Finished goods are the goods that are ready for sale or distribution. These goods have completed the manufacturing process and are in their final form. The opening inventory of finished goods includes all the goods that are ready for sale or distribution at the beginning of the accounting period.

All of the Above

The correct answer is option 'D', which means that the opening inventory of a manufacturing concern consists of all three categories of goods, i.e., raw materials, work-in-progress, and finished goods. The value of these goods is recorded in the accounting books of the manufacturing concern at the beginning of the accounting period, and it is used to calculate the cost of goods sold and the cost of goods manufactured during the period.