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inventory or stock refers to the goods and materials owned by a company with the goal of selling them to their customers such as the merchandise that is sold through a company stores but merchandise is not the only type of inventory there are three main types of inventory raw materials work in progress and finished goods raw materials are materials and supplies used in the production of finished goods they are not intended to be sold on their own by the business but rather transformed into finer products through manufacturing or Preparation process and then sold to customers in the form of finished goods for example a coffee shop that sells coffee beverages to the finite consumer Wood stock row coffee sugar and other ingredients used in the preparation of the finite beverage these ingredients on their own are not sold directly to the customer instead they are considered draw material type of inventory the second type is work in progress sometimes also called work in process this can us
