What is Finished Goods (FG)?

Finished Goods Definition

There are three (3) classes of inventory in manufacturing:

  1. Raw materials
  2. Work in process (WIP)
  3. Finished goods (FG)

Finished goods are products that have completed the entire manufacturing process, but have yet to be sold or distributed to consumers.

What is Finished Goods

FAQs

What is meant by finished goods?

Products that have completed the manufacturing process but have not yet been sold to customers are referred to as finished goods.

*Source: https://sumup.co.uk

What are the examples of finished goods?

Finished goods are items or products that don’t need to be processed further and are ready to sell and distribute. Examples include:

  • Automobiles
  • Electronics
  • Medical devices
What are unfinished goods?

Unfinished goods include components, ingredients, raw materials, semi-processed materials, and subassemblies. Unfinished items for products in the manufacturing process are included in the work-in-progress (WIP) inventory. These objects have not yet been completed and are in the process of being manufactured, waiting in a queue for additional processing, or being stored in a buffer.

*Source: https://courses.lumenlearning.com

What is the difference between finished goods and inventory?

The distinction between finished goods and inventory is that finished items are ready for sale and shipment, whereas inventory refers to any material or product that is utilized to create finished goods.

*Source: https://www.bluecart.com

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