Which of the following shows the order of cost flows through the manufacturing inventories?
A)raw materials,finished goods,work-in-process
B)raw materials,work-in-process,finished goods
C)work-in-process,raw materials,finished goods
D)work-in-process,finished goods,raw materials

Question

Quizplus · Accepted Answer

The order of cost flows in manufacturing inventories is from raw materials to work-in-process, and then to finished goods. Option B correctly follows this order, with raw materials being the first inventory, followed by work-in-process, and finally finished goods. Option A and C have the correct starting and ending inventory but are in the wrong order. Option D follows the correct ending inventory but has the incorrect order of cost flows.

Which of the Following Shows the Order of Cost Flows