Completed units that have not yet been sold are classified as finished goods inventory. Finished goods inventory refers to products that have fully completed the manufacturing process and are ready for sale to customers. These items have been assembled, inspected, and are stored in inventory awaiting purchase. They represent a current asset on a company's balance sheet because they are expected to be sold within a short period, typically within a year. Finished goods differ from raw materials and work-in-progress inventory, which are components and partially completed products, respectively, whereas finished goods are the final sellable units.
In summary, completed units that are unsold are part of the inventory called finished goods, indicating their status as final products ready for sale but still held by the company.
