Products and their costs flow through a production facility in the following order:

Question

Quizplus · Accepted Answer

Raw materials are the inputs that are processed into work in process, which are then processed into finished goods. The finished goods are then sold, with their costs flowing through the cost of goods sold account. This reflects the typical flow of costs in a manufacturing operation. Option A is incorrect because work in process should come before finished goods in the process. Option C has cost of goods sold coming before finished goods, which is not correct. Option D wrongly skips the raw materials stage.

Products and Their Costs Flow Through a Production Facility in the Following