Which of the following describes the correct sequence of flow of costs for a manufacturing firm?
A)Raw materials, finished goods, work-in-process, cost of goods sold.
B)Work-in-process, raw materials, finished goods, cost of goods sold.
C)Raw materials, work-in-process, finished goods, cost of goods sold.
D)Raw materials, work-in-process, cost of goods sold, finished goods.

Question

Quizplus · Accepted Answer

The correct sequence is: Raw materials are used in production, becoming Work-in-Process, which are then completed as Finished Goods, and finally sold, becoming Cost of Goods Sold.

Which of the Following Describes the Correct Sequence of Flow