In process costing, the costs flow from Raw Materials Inventory, to Work in Process Inventory, to Finished Goods Inventory.

Question

Quizplus · Accepted Answer

This statement is true. In process costing, the costs of raw materials and other inputs flow through the production process from the Raw Materials Inventory account to the Work in Process Inventory account, and finally to the Finished Goods Inventory account as the products are completed.

In Process Costing, the Costs Flow from Raw Materials Inventory