Which of the following describes the flow of product costs through the inventory accounts of a manufacturer?
A) Raw materials,goods in process,factory overhead,finished goods
B) Raw materials,goods in process,finished goods
C) Raw materials,direct labor,factory overhead,finished goods
D) Raw materials,direct labor,factory overhead

Question

Quizplus · Accepted Answer

Product costs in a manufacturing company flow from Raw Materials to Work in Process (Goods in Process) as they are used in production, then to Finished Goods as products are completed, and finally to Cost of Goods Sold as products are sold.

Which of the Following Describes the Flow of Product Costs