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in this video were gonna discuss finished goods inventory so you would see finished goods inventory for a manufacturing company because remember they have three types of inventory they have raw materials inventory work in process inventory which is partially completed units and then finished goods inventory so think about a company that builds houses they start out with raw materials which would be lumber for example and then they convert that to the frame of a house where the house is not completely built but theyve got a frame there and then at some point they actually finish it and they have a house okay so for that home builder the house would be finished goods inventory its good have been manufactured and now they are ready to be sold theyre good to go a customer can actually go and purchase it right so thats a finished good ok so this is one of the types of inventory and this is the last type before its gonna flow through cost of goods sold and end up on the income stateme