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,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 ➡ Cost of goods sold. This means that raw materials are used to create work in process, work in process is utilized to create finished goods, and finished goods are finally sold to the customers, resulting in the cost of goods sold. Therefore, the option that presents the correct sequence is D, which has the correct sequence of cost flows.

Select the Response That Indicates the Correct Sequence of Product