The flow of inventory costs in a manufacturing company is
A) work in process, raw materials, finished goods.
B) finished goods, work in process, raw materials.
C) work in process, finished goods, raw materials.
D) raw materials, work in process, finished goods.

Question

Quizplus · Accepted Answer

The flow of inventory costs in a manufacturing company starts with raw materials, which are then moved to work in process inventory as the manufacturing process begins. Once the products are completed, they are moved to finished goods inventory. Therefore, the correct order is raw materials, work in process, and finished goods.

The Flow of Inventory Costs in a Manufacturing Company Is