Which of the following is the order in which cost elements flow through accounts until they are recognized as an expense?
A) Work-in-Process, Finished Goods, Cost of Goods Sold
B) Raw Materials, Work-in-Process, Purchase Returns
C) Finished Goods, Cost of Goods Sold, Work-in-Process
D) Work-in-Process, Unsold Goods, Finished Goods

Question

Quizplus · Accepted Answer

The correct order in which cost elements flow through accounts until they are recognized as an expense is: Raw Materials, Work-in-Process, Finished Goods, and finally Cost of Goods Sold. Option A correctly represents the flow from Work-in-Process to Finished Goods, and then to Cost of Goods Sold, aligning with the typical manufacturing process flow.

Which of the Following Is the Order in Which Cost