In what order do cost elements flow through accounts until they are recognized as an expense?
A) Work-in-Process Inventory, Cost of Goods Sold, Finished Goods Inventory
B) Finished Goods Inventory, Cost of Goods Sold, Work-in-Process Inventory
C) Work-in-Process Inventory, Finished Goods Inventory, Cost of Goods Sold
D) Finished Goods Inventory, Work-in-Process Inventory, Cost of Goods Sold

Question

Quizplus · Accepted Answer

Cost elements flow through accounts in the following order: Work-in-Process Inventory, Finished Goods Inventory, and finally to Cost of Goods Sold. Choice C correctly follows this sequence.

In What Order Do Cost Elements Flow Through Accounts Until