Which of the Following Sequences Describes the Typical Flow of Costs

question 89

Multiple Choice

Which of the following sequences describes the typical flow of costs in a company that is using process costing?

• A)Raw Materials Inventory, Work in Process, Finished Goods, Cost of Goods Sold
• B)Work in Process, Finished Goods, Raw Materials Inventory, Cost of Goods Sold
• C)Raw Materials Inventory, Cost of Goods Sold, Work in Process, Finished Goods
• D)Finished Goods, Raw Materials Inventory, Work in Process, Cost of Goods Sold

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Definitions:

Accounts Receivable Subsidiary Ledger

is a detailed ledger showing individual transactions and balances for customers who owe money to the business, supplementing the general ledger.

Control Account

A general ledger account that summarizes and controls the total amounts recorded in subsidiary ledgers.

Cash Sales

Transactions where payment is made in cash at the time of purchase.

Monthly

Pertaining to or calculated for a period of one month.