What is typically included in the definition of 'finished goods' inventory?

The definition of 'finished goods' inventory typically refers to products that have been fully manufactured, are ready for sale, and are awaiting distribution or inspection. This means that completely processed materials, which are those items that have completed all stages of production and are no longer undergoing any manufacturing processes, indeed fit this definition.

These finished goods are important for businesses as they represent the final product that can be marketed and sold to customers. Finished goods inventory plays a crucial role in supply chain management and inventory control, ensuring that the company can meet customer demand without delays.

In contrast, the other options describe items that do not qualify as finished goods. Goods still in production are actively being made and cannot be sold. Partially completed products are in the middle of production and have not yet reached the stage where they can be sold. Raw materials are the basic components used in the production process and are clearly not finished goods. Thus, completely processed materials awaiting inspection accurately captures what finished goods inventory entails.