Which of the following is the correct flow of manufacturing costs?
A) raw materials, work in process, finished goods, cost of goods sold
B) raw materials, finished goods, cost of goods sold, work in process
C) work in process, finished goods, raw materials, cost of goods sold
D) cost of goods sold, raw materials, work in process, finished goods

Question

Quizplus · Accepted Answer

The correct flow of manufacturing costs starts with raw materials, which are then used to produce work in process. The work in process is later converted into finished goods, which are then sold to customers. The cost of goods sold is the expense incurred by the company for producing and selling the finished goods. Therefore, the correct order is raw materials, work in process, finished goods, and cost of goods sold.

Which of the Following Is the Correct Flow of Manufacturing