Which of the following is the correct flow of manufacturing costs?

Question

Quizplus · Accepted Answer

The correct flow of manufacturing costs starts with raw materials, which then move to work in process as they are being transformed into finished goods. Once the goods are completed, they move into finished goods inventory until they are sold. The cost of goods sold is the final stage, representing the cost of the goods that were sold during a particular period. Therefore, the correct order is Raw materials, work in process, finished goods, cost of goods sold.

Which of the Following Is the Correct Flow of Manufacturing