Which of the following is the correct flow of manufacturing costs? a. cost of goods sold, raw materials, work in process, finished goods b. raw materials, work in process, finished goods, cost of goods sold c. raw materials, finished goods, cost of goods sold, work in process d. work in process, finished goods, raw materials, cost of goods sold

The correct answer is b. raw materials, work in process, finished goods, cost of goods sold.

Explanation:

The flow of manufacturing costs is the path taken by costs as they move through the process. First, costs are incurred when raw materials are purchased. Second, they move to work-in-process inventory. Once the production process is complete, the costs move to the finished goods inventory classification. When the goods are sold, the costs move to the cost of goods sold.

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