Final answer:
Partially complete units of product are categorized as Work in Progress inventory. This is one of the main classifications of inventory, which also includes raw materials and finished goods. Option 1
Step-by-step explanation:
Units of product that are only partially complete are contained within Work in Progress inventory. This is part of the three main categories of inventory which are raw materials, work in progress (WIP), and finished goods. Raw materials are the inputs to the production process, such as flour and tomatoes for making pizza.
Once these materials are being processed but are not yet complete, they become part of the WIP inventory. After the products are completed, they move to finished goods, ready for sale.
Inventory represents the goods a business has produced but not yet sold, and is found in warehouses or on shelves, waiting for sale. If business conditions change, the level of inventory on shelves may increase or decrease accordingly. option 1