Select the response that indicates the correct sequence of product cost flows from production to sale.
A) Raw materials, finished goods, and cost of goods sold
B) Cost of goods sold, finished goods, work in process, and raw materials
C) Work in process, finished goods, and cost of goods sold
D) Raw materials, work in process, finished goods, and cost of goods sold

Question

Quizplus · Accepted Answer

The correct sequence of product cost flows from production to sale is raw materials, work in process, finished goods, and cost of goods sold. Raw materials are first used in the production process, becoming work in process. As production is completed, work in process becomes finished goods. Finally, when finished goods are sold, their cost is recorded as cost of goods sold.

Select the Response That Indicates the Correct Sequence of Product