Asked by Ryane Smalley on May 28, 2024
Verified
The flow of manufacturing overheads is:
Raw materials WIP Finished Goods COGS
Manufacturing Overheads
Indirect costs related to the production process, including utilities, depreciation of machinery, and factory rent.
Finished Goods
Products that have undergone the manufacturing process and are ready for sale to consumers.
Raw Materials
Basic substances in their natural, modified, or semi-processed states used as an input in the manufacture of goods.
- Absorb the principles of cost flow in manufacturing accounts and practice the calculation related to the cost of goods manufactured and subsequently sold.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
True
Explanation :
Manufacturing overheads flow through all stages of production, including raw materials, work in progress, finished goods, and ultimately, the cost of goods sold.
Learning Objectives
- Absorb the principles of cost flow in manufacturing accounts and practice the calculation related to the cost of goods manufactured and subsequently sold.