Types of inventory

There are four general categories of inventory:

1. Materials and supplies: these are materials that are consumed in the process of manufacturing product or in the conduct of business.

2. Work-in-process: partially finished product or subassemblies in the manufacturing process.

3. Finished goods: salable finished product.

4. Reject, damaged or obsolete: any of the above categories that are deficient in some way and cannot be carried at full value.