The flow of manufacturing costs through the system is:
A) raw materials inventory; work in process inventory; finished goods inventory; cost of goods sold.
B) raw materials inventory; work in process inventory; cost of goods sold; finished goods inventory.
C) work in process inventory; raw materials inventory; finished goods inventory; cost of goods sold.
D) raw materials inventory; finished goods inventory; work in process inventory; cost of goods sold.

Question

Quizplus · Accepted Answer

The correct sequence for the flow of manufacturing costs starts with raw materials inventory, moves to work in process inventory as materials are used in production, then to finished goods inventory once items are completed, and finally to cost of goods sold when the finished goods are sold.

The Flow of Manufacturing Costs Through the System Is