In the basic flow of inventory through a manufacturing system, which of the following occurs last in the job costing system?

Question

Quizplus · Accepted Answer

Cost of goods sold occurs last because it represents the cost of the goods that have been sold to customers. The cost flow in job costing system starts with raw materials inventory, then moves to work in process inventory, and finally to finished goods inventory. Cost of goods sold is calculated after the goods have been sold from the finished goods inventory.

In the Basic Flow of Inventory Through a Manufacturing System