Asked by Viviana Vergara on May 16, 2024
Verified
Which of the following is the correct flow of manufacturing costs?
A) raw materials, work in process, finished goods, cost of goods sold
B) raw materials, finished goods, cost of goods sold, work in process
C) work in process, finished goods, raw materials, cost of goods sold
D) cost of goods sold, raw materials, work in process, finished goods
Manufacturing Costs
The expenses directly related to the production of goods, including materials, labor, and overhead.
Raw Materials
Basic materials that are used in the production process to manufacture goods and are not yet processed or fabricated.
Work in Process
Goods that are in various stages of the production process but are not yet completed.
- Identify the flow of manufacturing costs from raw materials to cost of goods sold.
Verified Answer
HF
Harman FamilyMay 21, 2024
Final Answer :
A
Explanation :
The correct flow of manufacturing costs starts with raw materials, which are then used to produce work in process. The work in process is later converted into finished goods, which are then sold to customers. The cost of goods sold is the expense incurred by the company for producing and selling the finished goods. Therefore, the correct order is raw materials, work in process, finished goods, and cost of goods sold.
Learning Objectives
- Identify the flow of manufacturing costs from raw materials to cost of goods sold.