Finished goods facts for kids

The Air New Zealand Boeing 787-9 Dreamliner is an example of a finished good.

Finished goods are goods that have completed required manufacturing process and are awaiting to be fitted/mixed/processed with final product OR final product itself could also be called finished goods. Examples: cars, computers, spare parts, etc.

Manufacturing

In manufacturing there are three different sorts of stuff:

1. Raw material
2. Work in process
3. Finished goods

Something bought as a "raw material" is used to manufacture a product. A thing that is not completed during the manufacturing process is called "work in process". When the manufacturing of the thing is completed but it is not yet sold or distributed to the end-user, it is called a "finished good".

"Finished good" is a relative term. Finished goods of a supplier can be the raw material of the buyer. For example when the supplier sells paper and the buyer is a book publisher.

Other examples: cars, clocks, pianos etc.